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...
Free trade
A) helps economic growth by increasing tariffs. B) hurts economic growth because foreigners are not bound by the same patent laws as we are. C) helps economic growth by encouraging the sharing of technology and industrial ideas. D) hurts economic growth because foreign countries can produce goods with lower labor costs.
The law of demand for dollars in the foreign exchange market means that the
A) lower the exchange rate, the greater the quantity of dollars demanded. B) higher the exchange rate, the smaller the quantity of dollars demanded. C) lower the exchange rate, the smaller the quantity of U.S. exports demanded. D) Both answers A and B are correct.