All of the Following Statements About Corporations Are True Except

question 150

Multiple Choice

All of the following statements about corporations are true except

• A)they are chartered by the state.
• B)ownership is represented by shares of stock.
• C)the sale of stock does not dissolve the business.
• D)the stockholders have direct control of the business.

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum the consumer believes it is worth.

Absorption Costing

A pricing methodology that sums up all production-related costs, from raw materials and labor to both flexible and fixed overheads, in calculating the expense of a product.

Cost-plus Pricing

A pricing approach that sets the selling price by adding a predetermined markup to the cost per unit of a product.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated as net profit divided by the cost of the investment.