Asked by Mandeep Singh on May 27, 2024
Verified
The classification of a corporation depends on its
A) purpose.
B) ownership.
C) location.
D) All of these choices are correct.
Ownership
The state or fact of having legal possession and control over property, conferring rights such as use and the ability to transfer or sell it.
Corporation
A legal entity recognized by law as a separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, entering into contracts, and owning assets.
Purpose
A purpose is the reason for which something is done or created or for which something exists.
- Grasping the classification and characteristics of private, publicly held, and closely held corporations.
Verified Answer
JS
Jennifer SchenckJun 02, 2024
Final Answer :
D
Explanation :
The classification of a corporation can indeed depend on its purpose (e.g., non-profit vs. for-profit), ownership (e.g., publicly traded vs. privately held), and location (e.g., domestic vs. foreign in relation to the country of incorporation). Therefore, all of these factors are relevant in classifying a corporation.
Learning Objectives
- Grasping the classification and characteristics of private, publicly held, and closely held corporations.