Asked by Imuetiyan Eweka on May 12, 2024
Verified
Which of the following is true?
A) Corporations collect about 30 percent of all business receipts.
B) Corporations are controlled by the bondholders.
C) A key disadvantage of incorporating is that you will have to reorganize the corporation when one of the owners leaves the business.
D) None of the choices are true.
Corporations
Legal entities separated from their owners, which can own property, borrow money, sue or be sued, and enter into contracts.
Business Receipts
The total revenue received by a business from goods sold or services provided during a specific period.
Bondholders
Individuals or entities that own bonds, which are debt securities issued by corporations or governments, entitling them to receive a fixed amount of interest and repayment of principal.
- Distinguish between corporate, partnership, and proprietorship forms of business and their characteristics.
- Comprehend the significance of ownership and control in corporate structures.
Verified Answer
ZB
Zainab BerrianeMay 16, 2024
Final Answer :
D
Explanation :
Corporations do not necessarily collect about 30 percent of all business receipts as this figure can vary widely depending on the industry, size of the corporation, and economic conditions. Corporations are primarily controlled by shareholders rather than bondholders, although bondholders may have certain rights and influence. The statement about having to reorganize the corporation when one of the owners leaves is also incorrect; corporations are designed to have a perpetual existence, and the departure of an owner does not necessitate reorganization.
Learning Objectives
- Distinguish between corporate, partnership, and proprietorship forms of business and their characteristics.
- Comprehend the significance of ownership and control in corporate structures.