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Foundations of Business (MindTap C...

6th Edition
William M. Pride + 2 others
Publisher: Cengage Learning
ISBN: 9781337386920

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BuyFindarrow_forward

Foundations of Business (MindTap C...

6th Edition
William M. Pride + 2 others
Publisher: Cengage Learning
ISBN: 9781337386920
Chapter 4, Problem 3DQ
Textbook Problem
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Discuss the following statement: “Corporations are not really run by their owners.”

Summary Introduction

To determine: The reasons on which corporations are not run by their owners.

Introduction: A corporation is an authoritative type of business that is separate from its proprietors. It is a business that is a different legitimate element from its investors.

Explanation of Solution

The reasons on which corporations are not run by their owners are as follows:

In view of the fact that the proprietors of numerous corporations are investors, and they exchange th...

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