Hana has prepared the following list of statements about corporations.Identify each statement as true or false.1.A corporation is an entity separate and distinct from its owners.2.As a legal entity, a corporation may buy, own, and sell property: borrow money; and enter into legallybinding contracts.3.Shareholders have the right to vote, and to receive dividends on an annual basis.4.The profit of a corporation is not taxed as a separate entity.5.Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation doesnot pay its debts.6.Ina public company, the transfer of shares from one owner to another requires the approval of either thecorporation or other shareholders.The board of directors of a corporation is elected by the shareholders.7.8.Corporations are subject to fewer provincial and federal regulations than partnerships or proprietorships.>>

When the owner and business both are treated as different persons known as separate legal entity.

Answered: Hana has prepared the following list of…

Hana has prepared the following list of statements about corporations. Identify each statement as true or false. 1. A corporation is an entity separate and distinct from its owners.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How does the Model Business Corporation Act affect the way corporations operate?
What are the key characteristics of a corporation? What are some of the advantages and disadvantages of this form of business organization?
A director must be a shareholder in a corporation. True or False True False
Which of the following statements is true? A. the organizational form that is the easies to raise capital is the corporation B. corporations make up the largest proportion of businesses in the U.S C. sole proprietorships are protected by limited liability D. owners of corporations are not protected by limited liability
true or false? check pic
What is an important reason business owners choose the election for s corporation status.
TRUE OR FALSE. IF FALSE WHY. Shareholders elect the board of directors which appoints the management of a corporation.
True/False. In their Articles of Incorporation, corporations that want to maintain flexibility about future business ventures they might engage in often state a very generic corporate purpose (e.g., “engage in any activity that is lawful for domestic corporations”) or do not include a purpose at all if listing a purpose is optional.