How are shareholders of a corporation viewed in legal terms?O None of these describe the legal relationship of the owner to the business.O The assets of the owner are not considered separate from the asset of the business.O The owner and the business are separate legal entities.O The owner and the business are not separate legal entities.

This is thus because, inside a company, the owners, or shareholders, and the corporation itself are…

Answered: How are shareholders of a corporation…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 17MCQ

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Similar questions

Which of the following is not true of a corporation? Oa. It may enter into binding legal contracts in its own name. Ob. It may sue and be sued. c. The acts of its owners bind the corporation. Od. It may buy, own, and sell property.
A corporation is a business that is legally separate and distinct from its owners. True False ہے
The economic entity assumption requires that the activities Select one: a. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. b.of an entity be kept separate from the activities of its owner. c. of different entities can be combined if all the entities are corporations. d.must be reported to the Securities and Exchange Commission.
Which type of business organisation has a separated legal entity from its owners, and the owners are not liable for the debt of the business? Select one: A. Limited company B. Company C. Partnership D. Sole proprietorship
A corporation is a separate entity for accounting purposes but not for legal purposes. True False
A C corporation can be described as: (a) A business that is separate and distinct from its owners, allowing the owners to conduct business while limiting their personal liability. (b) A business association defined by federal statute. (c) A legal entity that has more than one shareholder. (d) A type of corporation where owners have limited liability, and income, expenses, and deductions flow through to the shareholders and are taxed only at the shareholder level.
If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False The owners of a corporation are personally responsible for the debts of the corporation. True or False
A corporation cannot start its operation if the Securities and Exchange Commission (SEC) does not issue the corporation’s certificate of incorporation. What principle is applied in this scenario a. None of the above b. Separate and distinct personality of the corporation c. Corporation is created by operation of law d. Corporation has a right of succession
True or false, why. 1. Shareholders can transact business on behalf of the corporation.
A corporation incurred liabilities to its suppliers. The suppliers filed a case against the board of directors of the corporation. The court dismissed the case based on the ground that the liabilities to the suppliers only belong to the corporation, not its board of directors. What principle is being applied in this scenario? Separate and distinct personality of the corporation None of the above Corporation has a right of succession Corporation is created by operation of law
When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its assets in the usual and regular course of its business? b. When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its assets other than in the usual and regular course of its business? c. What are the rights of a shareholder who dissents from a proposed sale or exchange of all or substantially all of the assets of a corporation other than in the usual and regular course of its business?
1.Which of the following is NOT one of the basic shareholder's rights? Which of the following is NOT one of the basic shareholder's rights? The right to participate in the proceeds of the sale of the corporation upon liguidation. The right to inspect the records of the corporation The right to maintain one's proportional interest in the corporation. The right to participate in earnings 2.

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