Lack of mutual agency is best described as which of the following?
A) The liabilities of the corporation cannot be extended to the personal assets of the stockholder.
B) Shares of stock can be readily purchased and sold by investors on an organized stock exchange.
C) Stockholders are not authorized to sign contracts or make business commitments on behalf of the corporation.
D) Corporations pay income tax on corporate earnings, and shareholders pay income tax on corporate dividends.
C
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Indicate whether the statement is true or false
In a partnership, mutual agency means that ________.
A) the addition of a new partner does not dissolve the old partnership; there is a mutual exchange of ownership with the existing partners B) every partner must contribute the same amount of capital C) the agency problem between the principal and agents are mutual and are neutralized D) any partner can bind the business to a contract within the scope of its regular business operations
Which of the following is not one of the four basic financial statements?
A) balance sheet B) statement of cash flows C) statement of changes in financial position D) income statement
A typical state long-arm statute applies only to nonresident defendants who commit criminal acts in the state
a. True b. False Indicate whether the statement is true or false