Clearly STATE which of the following choice(s) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why. (Note You can write several full sentences in the answer boxes but keep the explanations to 5-30 words). a. A hostile takeover is the main method of transferring ownership interest in a corporation. b. Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization. C. A corporation is a legal entity that is generally created by a state, and it has a life and existence that is separate from the lives of its individual owners and managers. d. Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization. e. Although its stockholders are insulated by limited legal liability, the legal status of the corporation does not protect the firm's managers in the same way, i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economíc conditions.

Clearly STATE which of the following choice(s) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why. (Note You can write several full sentences in the answer boxes but keep the explanations to 5-30 words). a. A hostile takeover is the main method of transferring ownership interest in a corporation. b. Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization. C. A corporation is a legal entity that is generally created by a state, and it has a life and existence that is separate from the lives of its individual owners and managers. d. Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization. e. Although its stockholders are insulated by limited legal liability, the legal status of the corporation does not protect the firm's managers in the same way, i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economíc conditions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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