Direction: Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F. 1. A corporation can be formed by mere agreement among shareholders. 2. Shareholders are not liable to corporate obligations in excess of their contribution. 3. Authority of the corporation to operate has to be granted by the state. 4. Death of a shareholder will dissolve the corporation. 5. Shares cannot be transferred without the consent of the other shareholders. 6. All incorporators are subscribers but a subscriber need not be an incorporator. 7. The ultimate control of the corporation rests with the board of directors. 8. Shareholders can transact business on behalf of the corporation. 9. All incorporators are shareholders but not all shareholders are incorporators. 10. In a corporation, minority shareholders are compliant to the wishes of the majority
Direction: Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F. 1. A corporation can be formed by mere agreement among shareholders. 2. Shareholders are not liable to corporate obligations in excess of their contribution. 3. Authority of the corporation to operate has to be granted by the state. 4. Death of a shareholder will dissolve the corporation. 5. Shares cannot be transferred without the consent of the other shareholders. 6. All incorporators are subscribers but a subscriber need not be an incorporator. 7. The ultimate control of the corporation rests with the board of directors. 8. Shareholders can transact business on behalf of the corporation. 9. All incorporators are shareholders but not all shareholders are incorporators. 10. In a corporation, minority shareholders are compliant to the wishes of the majority
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 12MCQ
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Direction: Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F.
1. A corporation can be formed by mere agreement among shareholders.
2. Shareholders are not liable to corporate obligations in excess of their contribution.
3. Authority of the corporation to operate has to be granted by the state.
4. Death of a shareholder will dissolve the corporation.
5. Shares cannot be transferred without the consent of the other shareholders.
6. All incorporators are subscribers but a subscriber need not be an incorporator.
7. The ultimate control of the corporation rests with the board of directors.
8. Shareholders can transact business on behalf of the corporation.
9. All incorporators are shareholders but not all shareholders are incorporators.
10. In a corporation, minority shareholders are compliant to the wishes of the majority.
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