Which of the following is not true of a corporation?

A) It may buy own and sell property.
B) It may sue and be sued.
C) The acts of its owners bind the corporation.
D) It may enter into binding legal contracts in its own name.

Question

Promise ENYONG · Accepted Answer

Final Answer : C, Explanation :  The acts of the owners do not bind the corporation. A corporation is a separate legal entity from its owners, meaning the corporation is responsible for its own debts and obligations, and the owners are not personally liable unless they have signed personal guarantees or engaged in wrongful conduct.

Which of the following is not true of a corporation?

A) It may buy own and sell property.
B) It may sue and be sued.
C) The acts of its owners bind the corporation.
D) It may enter into binding legal contracts in its own name.

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Learning Objectives

Learning Objectives

Related questions

Which of the following is not true of a corporation?A) It may buy own and sell property.B) It may sue and be sued.C) The acts of its owners bind the corporation.D) It may enter into binding legal contracts in its own name.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following is not true of a corporation?

A) It may buy own and sell property.
B) It may sue and be sued.
C) The acts of its owners bind the corporation.
D) It may enter into binding legal contracts in its own name.