Which of the Following Is True About a Corporation

question 142

Multiple Choice

Which of the following is true about a corporation?

• A) It combines the advantages of the other forms-sole proprietorship, partnership, and limited liability corporation.
• B) Only a for-profit business can be registered as a corporation.
• C) It exists separately from its owners.
• D) For tax purposes, it functions as a partnership.
• E) For liability purposes, it functions as a partnership.

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Definitions:

Time Value

The portion of an option's premium that is attributable to the amount of time remaining until the expiration of the option.

Call Option

An economic agreement granting the purchaser the choice, but not the duty, to acquire a stock, bond, commodity, or any asset at a previously determined price within a set period.

Call Option

A financial agreement that allows the purchaser the option, without the requirement, to purchase a stock, bond, commodity, or different asset at an agreed-upon price during a predetermined timeframe.

Expiration

The predetermined date on which an options or futures contract becomes void and the right to exercise it ceases.