The distinguishing feature of a corporation is that:

SELECT THE CORRECT ONE ?A there is no legal difference between the corporation and its owners.

B it is a legally defined, artificial being, separate from its owners.

C it spreads liability for its corporate obligations to all shareholders.

D provides limited liability only to small shareholders.

By evaluating cost and benefits using competitive market prices, we can determine whether a decision will make the firm and its investors wealthier. This central concept is called:

A the Law of One Price. B the Present Value. C the Valuation Principle. D the Internal Rate of Return