Which of the Following Statements Is True of a Corporation

question 40

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 corporate dividends.

Apply algebraic methods to solve linear equations in one and two variables.

Understand the impact of compound interest on investment growth.

Apply mathematical reasoning to solve word problems.

Calculate the final value of investments using different interest rates and time periods.

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Definitions:

Marginal Benefits

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.

Pollution Tax

A levy imposed on activities that emit pollutants, intended to internalize the environmental costs of those emissions and encourage pollution reduction.

Total Emissions

The sum of all pollutants released into the atmosphere from various sources within a specified area or by a particular process.

Alpha Emissions

A type of radioactive decay where an alpha particle, consisting of two protons and two neutrons, is emitted from the nucleus of an atom, reducing its mass and changing its atomic structure.