A corporation is an organization
A)with owners assuming personal liability for business losses.
B)that joins two or more people together as co-owners.
C)that is an "artificial being" created by individual state laws.
D)that gives stockholders control of everyday management decisions.
E)that does not sell stock to raise capital.

Question

Quizplus · Accepted Answer

A corporation is created by individual state laws, and therefore is considered an "artificial being." Choices A, B, and D are incorrect because corporations typically limit personal liability for business losses and give control to a board of directors or executive team rather than individual stockholders. Choice E is incorrect because selling stock is a common way for corporations to raise capital.

A Corporation Is an Organization