A corporation’s authority to act and its liability for those actions is, with respect to the firm’s owners,
a) proportional.
b) one and the same.
c) joint and several.
d) separate and apart.
Answer: d) separate and apart.
Explanation: A corporation is defined as a legal entity which is recognized by the laws of the state and also it can have one or more owners (which are also known as shareholders), can operate under a name which is quite distinct from the names of the companies' owners and lastly the authority to act and the liability for its actions are separate and apart from the individuals who own it. The correct option is D.
You might also like to view...
The above figures show the market for HD televisions. If people's incomes increase and HD televisions are a normal good, which figure shows the effect of this change?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
If drugs such as marijuana and cocaine were legalized, it would be likely that
a. their prices would decrease. b. there would be a reduction in tainted or poor quality drugs. c. there would be less violence occurring in drug transactions. d. all of the above.
The amount of corruption that occurs in a government is hard to measure because:
A. it is illegal, and therefore hidden. B. the benefits subtracted from the costs often go to a small number of people and distort the reality. C. its costs are mostly indirect and nearly impossible to measure. D. All of these are true.
Someone who derives benefits from something not paid for is a ______.
a. negative spillover b. rival consumer c. free rider d. moral hazard