Which of the Following Is a Major Reason Why Corporate

question 171

Multiple Choice

Which of the following is a major reason why corporate ownership is popular in the United States?

• A)Stockholders have limited liability for the debts of the corporation.
• B)Most corporations are small- or medium-sized.
• C)The life of a corporation is limited by the death of the owner.
• D)A corporation is usually managed by the owners.

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Definitions:

No Training

Indicates a situation or condition where education or instruction has not been provided.

Partially Disclosed Principal

A partially disclosed principal is a party in an agency relationship whose existence is known to a third party, but their identity is not revealed.

Undisclosed Principal

A person who directs another to deal with a third party without revealing their identity.

Durable Power

A legal document that grants someone the authority to act on another's behalf in legal and financial matters, which continues to be effective even if the grantor becomes incapacitated.