A Corporation Differs from Other Forms of Businesses Because It

question 148

Multiple Choice

A corporation differs from other forms of businesses because it

• A)is required to own a seat on a stock exchange.
• B)has a lower debt ratio.
• C)has no tax liability.
• D)is characterized by limited profits.
• E)is owned by people who enjoy limited liability.

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Definitions:

American Law

The legal system of the United States, including its statutes, regulations, case law, and constitutional provisions.

Insider Trading

The unlawful activity where individuals trade on the stock market for personal gain using private, sensitive information.

Business Judgment Rule

A legal principle that protects the decisions of a corporate board of directors from judicial review as long as those decisions are made within their authority and with a reasonable belief that they were in the best interests of the company.

Currency Trader

An individual or entity that buys and sells currency pairs on the foreign exchange market to profit from exchange rate fluctuations.