Which of the following are correct descriptions of large corporations? a) Managers no langer have the incentive to act in their own interests. b) The corporation survives even f managers are dismissed c) Shareholders can sell their holdings without disrupting the business d) Corporations, unlike sole proprietorships, do not pay tax: instead, shareholders are taxed on any dividends they receive.

Question

maryppp8786 maryppp8786

01-09-2020
Business

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Which of the following are correct descriptions of large corporations? a) Managers no langer have the incentive to act in their own interests. b) The corporation survives even f managers are dismissed c) Shareholders can sell their holdings without disrupting the business d) Corporations, unlike sole proprietorships, do not pay tax: instead, shareholders are taxed on any dividends they receive.

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stanfordgoddy stanfordgoddy · Answer 1 · 2020-09-04T02:37:06+02:00

Answer:

b) The corporation survives even if managers are dismissed.

c) Shareholders can sell their holdings without disrupting the business.

Explanation:

The above statements are correct descriptions of large corporations if consider;

1. A corporation is viewed as a legal entity, and so is believed to exist (survive) even if those who manage the corporation are dismissed.

2. Put simply, a shareholder holds some owns certain decision rights of a corporation, thus, the shareholder can decide to sell their holdings to an interested party. However, the business would not be disrupted, as only the holdings of a particular shareholder were sold, and the new shareholder would normally want the best interest of the company that's why he made the deal.