Which of the Following Statements Is TRUE of a Corporation

question 222

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:

Physical Punishment

A form of discipline that involves causing physical pain to a person, often used as a method to correct misbehavior.

Economic Independence

The condition of having sufficient personal wealth to live, without having to work actively for basic necessities, or a nation's capacity to create a sustainable and self-sufficient economy without external aid.

Native American Society

The complex and diverse social structures, cultures, and traditions of the indigenous peoples of the Americas before and after European colonization.

Seventeenth Century

The period from January 1, 1601, to December 31, 1700, marking the 17th century in the Gregorian calendar, notable for significant cultural, political, and scientific developments.