Which of the Following Statements Is True of a Corporation

question 19

Multiple Choice

Which of the following statements is true of a corporation?

• A) Corporations pay the same variety of taxes as partnerships.
• B) Although a corporation is a separate legal entity, it cannot be sued.
• C) Any stockholder of a corporation can commit the corporation to a binding contract.
• D) The owners of a corporation are called stockholders.

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Definitions:

Reaction

A procedure whereby reactants are changed into different entities, the outcomes of which are called products.

Sodium Salt

A compound formed from the neutralization of an acid with sodium hydroxide, where the hydrogen of the acid is replaced with a sodium ion.

Fatty Acid

Organic molecules consisting of a hydrocarbon chain and a terminal carboxyl group, playing vital roles in energy storage and cell membrane structure.

Hard-water Scum

The residue formed by the reaction of soap with the magnesium and calcium ions present in hard water.