Which of the following statements is true of a corporation? A. The owners of a corporation are called stockholders. B. Any stockholder of a corporation can commit the corporation to a binding contract. C. Although a corporation is a separate legal entity, it cannot be sued. D. Corporations pay the same variety of taxes as partnerships.
A. The owners of a corporation are called stockholders
Explanation:
Stockholders are those who have a legitimate right to own the standing share of the company as assets as they also share a certain margin of profit with the company which is evident by the paper certificates.
They are largely interchangeable and are the ultimate owners of the cooperation. They have the right to elect the directors and vote for major corporate actions.
