Which of the Following Statements Is TRUE of a Corporation

question 222

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 the dividends received.

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Definitions:

Web Surfing

The activity of browsing the internet by moving from one website to another, usually in an informal or recreational manner.

Citizenship Behavior

Voluntary actions by employees that contribute to the organization's well-being but are not explicitly recognized by the formal reward system.

Display Rule

Cultural norms that dictate how emotions should be expressed or suppressed in social settings.

Emotion

A complex psychological state involving an individual's physiological arousal, expressive behaviors, and conscious experience.