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.

---

Definitions:

Destructive Conflict

Conflict that dismantles rather than strengthens relationships.

Flexibility

The quality of being adaptable or willing to adjust to new conditions, situations, or changes.

Active Conflict

A situation where there is an overt disagreement or opposition between parties, often requiring direct attention and resolution.

Prior Conditions

Preexisting states or situations that influence or determine the context for future events or decisions.