Which of the following statements about the corporate form of business organization is correct?
A) A corporation has the legal authority to act like a person when conducting business.
B) In the United States, corporations generate a lower percentage of total annual sales than either partnerships or proprietorships.
C) Corporations generally are smaller than either partnerships or proprietorships.
D) One of the most important features of the corporate form of business organization is that stockholders have unlimited liability.
E) Corporations can operate under different degrees of formality, ranging from informal, oral understandings to formal agreements filed with the secretary of the state in which the corporations does business.

Question

Quizplus · Accepted Answer

A corporation has the legal authority to act like a person when conducting business. This is commonly referred to as corporate personhood, which means that a corporation can own property, enter into contracts, and conduct business in its own name, just like an individual person.

Which of the Following Statements About the Corporate Form of Business