Explain the main characteristics of a corporation
Please provide the best answer for the statement.
Corporations are legal business organizations which are distinct and separate entities from the individuals who own them. As such, corporations are treated as legal persons that can acquire resources, own assets, produce and sell products, incur debts, extend credit, sue and be sued, and carry on all functions which other forms of business enterprises (sole proprietorship or partnership) perform. Professional managers typically run corporations and they are supervised by a board of directors that is elected annually by the corporations’ owners. Corporations can be very large, such as Google or Walmart, or quite small, such as a local restaurant or used car dealership.
You might also like to view...
Consider a $2 billion open market purchase of U.S. Treasury securities by the Federal Reserve. The Banking System's balance sheet will specifically show:
A. no net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing by $2 billion respectively. B. only an increase in liabilities of $2 billion. C. only a decrease in assets of $2 billion. D. no net change in assets or liabilities, only a change in the composition of assets with securities decreasing and reserves increasing by $2 billion respectively.
Figure 7-6
Between $3 and $4, the price elasticity of the demand curve depicted in is
a.
relatively inelastic.
b.
approximately equal to -0.33.
c.
approximately equal to -3.
d.
both a and b.
Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is ?1.25. Then we know that:
A. marginal revenue is $2. B. demand is unit elastic. C. marginal revenue is $50. D. demand is inelastic.
Suppose you buy a new car for ?$28,000. One year later it is worth ?$21,000?, and two years later it is worth ?$18,480. The depreciation on the car
A. cannot be determined B. is 25 percent in the first year C. is 34 percent for the two years overall D. rises for the second year.