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NEW QUESTION: 1
Which of the following options is an example of an expense?
A. Purchase of $10,000 of fabric to be used by a clothing manufacturer
B. Payment of $6,000 for vehicle insurance covering the next year
C. Consumption of $500 of electricity for the head office building
D. Purchase of a new vehicle for $30,000 by a delivery company
Answer: C

NEW QUESTION: 2

A. Option A
B. Option C
C. Option D
D. Option B
Answer: A

NEW QUESTION: 3
Jennifer wants to form a corporation that will develop software. As she studies the pros and cons of a corporation entity, she learns that there are four distinct characteristics of a corporation. Which of the following is NOT a characteristic of a corporation?
A. There is not a central management structure.
B. Liability is limited to the assets of the corporation.
C. Ownership of the corporation can be transferred by selling stock.
D. Life of the corporation can extend beyond the life of the founder.
Answer: A
Explanation:
Explanation/Reference:
Answer option C is correct.
A corporation does have a central management structure called the board of directors for the company.
The board of directors establishes the mission, vision, and management direction for the structure.
Answer option A is incorrect. Liability is limited to the assets of the company, not its owners.
Answer option B is incorrect. Corporations can continue to exist beyond the life of its founder.
Answer option D is incorrect. Stock and shares of the company technically transfer ownership of the company to other people. These shareholders can sell and trade the stock if they'd like.
Reference: Professional in Human Resources Certification Study Guide, Sybex, ISBN: 978-0-470-43096-5.
Chapter Four: Workforce Planning and Employment. Official PHR and SPHR Certification Guide, HR Certification Institute, ISBN: 978-1-586-44149-4, Section III, The US Body of Knowledge.
Chapter: Workforce Planning and Employment
Objective: Global Considerations