A Corporation That Exists in Law, Having Met All of the Necessary

question 21

Multiple Choice

A corporation that exists in law, having met all of the necessary legal requirements is called a _____.

• A) de facto corporation
• B) de jure corporation
• C) S corporation
• D) respondeant corporation
• E) fee simple corporation

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Definitions:

Basic Earnings Per Share (Eps)

A calculation that determines the amount of net income earned per share of common stock, excluding the effect of potentially dilutive securities.

Financial Statements

A comprehensive set of reports that provide insights into an entity's financial position, performance, and cash flows over a specific period.

Basic Accounting Equation

The fundamental formula in accounting that states that Assets = Liabilities + Equity.

Liabilities

Financial obligations or debts owed by a business to another entity, which are expected to be settled through the transfer of economic benefits like cash or goods.