Which of the following statements is a defining feature of a corporation?
a. The owners of a corporation face unlimited liability on debts.
b. A corporation owns and operates units only in foreign countries.
c. A corporation is created by a verbal agreement.
d. A corporation that is based on a verbal agreement is also recognized by State law.
e. A corporation has a legal identity that is separate from that of its owners.
e
You might also like to view...
Refer to Table 11-7. What is the average variable cost per unit of production when the firm produces 90 lanterns?
A) $490 B) $33.67 C) $7.67 D) $5.44
The Coase theorem states that if private parties can negotiate the purchase and sale of the right to perform activities that cause externalities, then they:
A. will never arrive at efficient solutions to the problems caused by externalities. B. will never perform activities that generate negative externalities. C. will always perform activities that generate positive externalities. D. can always arrive at efficient solutions to the problems caused by externalities.