Which of the following is true of a corporation?
A)It is an artificial being, existing only in contemplation of law.
B)Shareholders of a corporation represent the corporation as agents.
C)Stockholders perform all the administrative functions of the corporation.
D)Stockholders directly control the day to day activities of a corporation.

Question

Quizplus · Accepted Answer

Corporations are considered artificial entities created by law, which means they have a legal identity separate from their owners or shareholders. This allows them to own property, enter into contracts, and be sued independently of the people who own them. Shareholders do not act as agents for the corporation, nor do they manage the daily operations; these responsibilities typically fall to the board of directors and appointed officers.

Which of the Following Is True of a Corporation