Under the Corporate Form of Business Organization

question 123

Multiple Choice

Under the corporate form of business organization,

• A) ownership rights are easily transferred
• B) a stockholder is personally liable for the debts of the corporation
• C) corporations are not subject to the Sarbanes-Oxley Act
• D) stockholders wishing to sell their corporate shares must get the approval of other stockholders

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Definitions:

Constant Rate

A situation or condition in which a particular variable remains unchanged over a period of time.

Dividends

A corporation's distribution of profits to its shareholders as payments.

Paid

Refers to the status of a financial obligation that has been fulfilled or settled.

Constant Annual Dividend

This refers to dividends that are paid out to shareholders at a constant rate each year, without fluctuation.