4 10 Points Question 4 Shareholders in a corporation elect _________ who are responsible for major policy decisions in the corporation. Option A officers Option B promoters Option C directors Option D incorporators Question 5 Question 5 10 Points Question 5 A corporation that has been properly formed is called a(n): Option A de facto corporation Option B ultra vires corporation Option C subchapter s corporation Option D de jure corporation Question 6 Question 6 10 Points Question 6 Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as: Option A dividend taxation Option B corporate taxation Option C double taxation Option D retained earnings taxation Question 7 Question 7 10 Points Question 7 What does it mean that a corporation is a separate legal entity? Option A The corporation is owned by people who are known as shareholders. Option B The corporation has to have an address for the business it operates that is different than the addresses of the people who own the corporation. Option C The corporation has to be managed by people who are not shareholders in the corporation. Option D The corporation is considered to be a legal person with certain rights that exists independently of the people who own stock in the co