Which One of the Following Statements Is Correct

question 31

Multiple Choice

Which one of the following statements is correct?

• A)The majority of firms in the U.S. are structured as corporations.
• B)Corporate profits are taxable income to the shareholders when earned.
• C)Corporations can raise large amounts of capital generally easier than partnerships can.
• D)Stockholders face no potential losses related to their corporate investment.
• E)Corporate shareholders elect the corporate president.

Recognize the different economic systems and their key features, such as capitalism and socialism.

Identify the characteristics of professional employment and its regulatory bodies.

Understand the implications of industrialization and post-industrialization on society and the economy.

Recognize the impact of part-time work and educational requirements on the labour market.

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Definitions:

Subsidiary

A company that is completely or partially owned and wholly controlled by another company, known as the parent company.

Corporate Takeover

The acquisition of one company, called the target company, by another, referred to as the acquiring company, which effectively allows the acquiring company to make decisions for the target company.

Distribution

Payment made by a firm to its owners from sources other than current or accumulated earnings.

Going-Private Transaction

A corporate action in which a company's outstanding public shares are bought out, usually by a private investor, to delist it from public stock exchanges.