A Corporation Is

question 32

Multiple Choice

A corporation is

• A) unable to be sued.
• B) very distinct legally from a person.
• C) global division of labor.
• D) legally treated as a person.

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Definitions:

Future Bond Issue

A planned issuance of bonds by a corporation or government in the future to raise capital.

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Treasury Stock

Shares of a company's own stock held by the company itself, often bought back from shareholders and not considered when calculating earnings per share or dividends.

Retained Earnings

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company for reinvestment.