Future Business Leaders of America (FBLA) Agribusiness Practice Test

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Enhance your FBLA Agribusiness knowledge with our comprehensive test. Dive into flashcards and multiple-choice questions, complete with hints and explanations, to ensure exam success. Prepare confidently for a bright future!

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What is the life span of a corporation?

It is indefinite and continues separately from its owners
It lasts only as long as the founders are alive
It can only operate for a maximum of ten years
It must renew its charter every five years

The correct answer is: It is indefinite and continues separately from its owners

The life span of a corporation is indeed indefinite and continues separately from its owners. This characteristic is one of the defining features of a corporation, distinguishing it from other business entities like sole proprietorships or partnerships, which can dissolve upon the death or withdrawal of the owners. In a corporation, the entity is treated as a distinct legal person, meaning it has its own rights and responsibilities independent of its shareholders. This allows the corporation to continue existing beyond the involvement of original founders or shareholders, facilitating longevity and stability in operations. Additionally, corporations can undergo changes in ownership through the sale of stocks or transfer of shares without impacting the entity's existence.