Which of the Following Statements Is True of the Corporate

question 182

Multiple Choice

Which of the following statements is true of the corporate form of business?

• A) The board of directors sets policy for the corporation and appoints the officers.
• B) Changes in the ownership of stock have a negative effect on the continuity of the corporation.
• C) Any stockholder may commit the corporation to a contract.
• D) It is easy for stockholders to lodge an effective protest against management.

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Definitions:

Static Budget

A fixed budget that does not change or adapt to variations in business activity levels throughout the fiscal year.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, enabling more accurate budgeting in variable cost categories.

Single Level

Referring to a structure or system that operates or is organized at one layer or stage without any subdivisions or hierarchical levels.

Activity Levels

Activity Levels in cost accounting refer to the volume of production or operations that can significantly influence costs, guiding how businesses adjust their spending and operational strategies.