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Most Publicly Traded Firms Operate as Corporations

Question 60

Multiple Choice

Most publicly traded firms operate as corporations.Which of the following is/are not true?


A) The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm.
B) The transfer of ownership interests is a transaction between shareholders and does not involve the firm whose shares change hands.
C) Investors make capital contributions under a contract between themselves and the corporation.
D) The corporation has legal status separate from its owners.
E) none of the above

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