Which of the Following Statements Is True of a Corporation

question 39

Multiple Choice

Which of the following statements is true of a corporation?

• A) Shareholders can be required to pay debts of the corporation.
• B) Shares of stock cannot be readily purchased and sold by investors on an organized stock exchange.
• C) Shareholders are authorized to sign contracts or make business commitments on behalf of the corporation.
• D) Corporations pay income tax on corporate earnings, and shareholders pay income tax on the dividends received.

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Definitions:

Added Value

The enhancement a company gives its product or service before offering it to customers, adding worth through extra features or services.

Project Allegiance

Loyalty or commitment to the goals and success of a specific project.

New Career Paradigm

A contemporary approach to careers characterized by flexibility, self-employment, and changing roles rather than the traditional stable, lifelong positions within a single organization.

Project Team

A group of individuals assembled to work collaboratively on a specific project, pooling their skills and resources to achieve shared objectives.