Corporations differ from partnerships and other forms of business association in two ways. One of these is that
A) they are regulated by the Federal Trade Commission.
B) they are formed simply by an agreement entered into among their members.
C) they must be publicly registered or in some way officially acknowledged by the law.
D) their shareholders are entitled to their share of the company's profits as soon as they are ascertained or determined.

Question

Quizplus · Accepted Answer

Corporations must be publicly registered or officially acknowledged by law through a process called incorporation. This is different from partnerships, which can be formed simply by an agreement between their members. Additionally, corporations are regulated by various government entities such as the Securities and Exchange Commission, but not necessarily by the Federal Trade Commission. Shareholders in a corporation are entitled to their share of profits only if and when the corporation's board of directors declares a dividend.

Corporations Differ from Partnerships and Other Forms of Business Association