A Corporation Can BEST Be Described by Which of the Following

question 14

Multiple Choice

A corporation can BEST be described by which of the following statements?

• A) It cannot be sued.
• B) It is subject to federal laws only.
• C) It is a taxable entity.
• D) It cannot own land but can own buildings.

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Definitions:

Franchisor

The party in franchising that owns the overarching company, trademarks, and products or services being offered, which grants the right for a franchisee to operate under the business's name.

Franchisee

A party that acquires the rights to use a company's trademark and business model to conduct business under that name.

Royalty Fees

Periodic payments made by a franchisee to the franchisor, typically based on a percentage of the franchisee's sales revenue.

Gross Profits

The total revenue from sales minus the cost of goods sold, before deducting operating expenses.