Consider the following statements:
1. A corporation differs from other forms of business organisation only in that it tends to be larger.
2. The corporate form of business organisation is destined to failure because 'managers', and not the 'owners', run the business.
3. The corporate entity ceases on the death or bankruptcy of the individual shareholders.
4. The stock exchange is important to the corporation only because it provides the institutional framework through which new shares may be sold to the public.
5. Managers in corporations will always work to maximise shareholder wealth. How many of these statements are true and how many are false?

Question

Consider the following statements:  
 1. A corporation differs from other forms of business organisation only in that it tends to be larger. 
 2. The corporate form of business organisation is destined to failure because 'managers', and not the 'owners', run the business. 
 3. The corporate entity ceases on the death or bankruptcy of the individual shareholders. 
 4. The stock exchange is important to the corporation only because it provides the institutional framework through which new shares may be sold to the public. 
 5. Managers in corporations will always work to maximise shareholder wealth. How many of these statements are true and how many are false?

Answer

2 statements are true and 3 are false

Answer

3 statements are true and 2 are false

Answer

0 statements are true and 5 are false

Answer

4 statements are true and 1 is false

Crowdly

Consider the following statements: 1. A corporation differs from other forms ...

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