I.Multiple Choice1. A major disadvantage of a corporation is...a. Additional taxesb. Limited liability of stockholdersc. Separate legal existenced. Transferable ownership rights2. The stockholders' equity equals.….a. Capital stock + Additional paid-in capital – Retained Earningsb. Common stock + Retained Earningsc. Paid-in Capital + Capital stock + Retained Earningsd. Total paid-in capital + Retained Earnings3. XYZ Corporation issued 1,000 shares of $6 par value stock for a drilling machine.The stock market price was $9 per share. The drilling machine was advertised forsale at $10,500. The drilling machine should be recorded at...a. $6,000c. $9,000b. $4,000d. $10,500

Hi Student, Since there are multiple questions, we will answer only first question. If you want…

Answered: I. Multiple Choice 1. A major…

I. Multiple Choice 1. A major disadvantage of a corporation is... a. Additional taxes b. Limited liability of stockholders c. Separate legal existence d. Transferable ownership rights

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 1. Which of the following characteristics of a sole proprietorship would be considered a…

A: Losses are limited to owner's investment This remark suggests unlimited liability, even if it may…

Q: which of the which of the following statements always apply to corporations a. unlimited liability…

A: A business can run through several legal types and forms. Some of the popular forms in which a…

Q: In an S Corporation are the unit holders liable for busin

A: Yes, they are liable for business losses too if they fulfill these requirements.

Q: Owners of preference shares often do not have: A Voting rights. B The right to sell their shares…

A: Solution- Preference shares, more commonly referred to as preferred stock, are shares of a company’s…

Q: Which of the following is not an advantage of a corporation? O Double taxation Continuous life…

A: Double taxation means income tax paid twice on company's income.So, it is not an advantage for…

Q: Indicate which of the following features would be considered an advantage of acquiring assets rather…

A: When acquiring a company, the buyer can choose to acquire assets or shares. Acquiring assets allows…

Q: None

A: Let us analyze each option in the context of how theory can predict accounting practice: a. Capital…

Q: Which one of the following is the least likely reason a company may acquire an ownership interest in…

A: An acquisition occurs when a company acquires most of the shares of another company by making a huge…

Q: One of the main disadvantages of the corporate form is the O a. inability to raise large amounts of…

A: A corporation is an entity created by a group of shareholders with a common goal. Shareholders share…

Q: M&M Proposition II, without taxes, puts forth that, Multiple Choice the capital structure of a…

A: MM Proposition 2 states that cost of equity is directly proportional to component of debt in its…

Q: Managerial motives for mergers and acquisitions do not relate to Select one: a. Dividends b. Job…

A: Mergers and acquisitions (M&A) are complex business transactions where two companies combine…

Q: Identify the advantages of forming a business as an S Corporation. Multiple Choice O O owners avoid…

A: An S corporation is a separate legal entity that elects to be taxed under sub chapter S of chapter 1…

Q: In which two ways is corporate profits tax similar to the payments to common shareholders (owners)…

A: Shareholders are entitled to share in the company's profits. A corporate tax, also called…

Q: One of the main disadvantages of the corporate form is the a.double taxation of dividends…

Q: One of the following characteristics of a corporation is deemed a disadvantage. Which is it? a.…

A: Corporation is a finance by the shareholders and handled by the management and employees. We can…

Q: What is meant by the term "pass through entity"? Select one: a. The entity is subject to double…

A: Pass through entity means that the profit which is earned by business entity is not taxed at entity…

Q: Sumarise the advantages and dis advantages of corporation which features contribute to the dominance…

A: Corporation is form of organization under which the owners are carrying separate entity from the…

Q: Which of the following is incorrect regarding for-profit corporations? Multiple Choice Most business…

A: Corporations are the entity created by laws. Corporation can be two types, one is formed for profit…

Q: Disadvantages of the corporate form include: Multiple Choice double taxation agency costs

A: A Corporation is an entity created by law, in which owners have limited liability. They can lose up…

Q: A C-corporation has the following advantages EXCEPT limited liability avoiding double taxation…

A: Corporation- A corporation is a separate legal entity that is separate and distinct from its owners.…

Q: Some advantages of obtaining control by acquiring a controlling interest in stock but: The cost may…

A: Acquiring a controlling interest in stock is a strategic move that can offer various advantages.…

Q: What is a disadvantage of the corporate form? O Profit O Revenue Owners have very little influence…

A: Eliminating the incorrect options:A. Profit: Profit is not a disadvantage of the corporate form of…

Q: An individual provides accounting services to a corporation in exchange for stock. the shareholder…

A: Recognition of revenue - is an important aspect of accounting of revenue to be presented during the…

Q: Decide which of the following statements are true. I. In most circumstances, the owners of…

A: Answer : Option (a).One is true is correct.

Q: Which of the following is a disadvantage of the corporate form of organization? difficulty in…

A: The corporate form of organization might pay corporate income taxes on their earnings which is…

Question

I.
Multiple Choice
1. A major disadvantage of a corporation is...
a. Additional taxes
b. Limited liability of stockholders
c. Separate legal existence
d. Transferable ownership rights
2. The stockholders' equity equals.….
a. Capital stock + Additional paid-in capital – Retained Earnings
b. Common stock + Retained Earnings
c. Paid-in Capital + Capital stock + Retained Earnings
d. Total paid-in capital + Retained Earnings
3. XYZ Corporation issued 1,000 shares of $6 par value stock for a drilling machine.
The stock market price was $9 per share. The drilling machine was advertised for
sale at $10,500. The drilling machine should be recorded at...
a. $6,000
c. $9,000
b. $4,000
d. $10,500

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

* Explan.
5. advantages of a C- corporation ordinarily include ease of capital accumulation, ready transferability of ownership rights, and both a limited life of the corporation and limited liability of the shareholders
am. 05.
(Multiple Choice) A corporation can only pay dividends to shareholders from its: 1. Legal Capital 2. Authorized Shares 3. Retained Earnings 4. Contributed Capital 5. Share Capital
The cost of equity is the rate associated with what the shareholders expect the corporation to earn in order for that shareholder to maintain ownership in the company. True / False
6
The accumulated earnings tax, which is imposed on corporations for the accumulation of earnings in excess of reasonable business needs, does not apply to: a. Closely-held corporations. b. Widely-held corporations. c. Corporations subject to the personal holding company tax. d. Both "Widely-held corporations" and "Corporations subject to the personal holding company tax". e. All of these choices are correct.
Hans
Why would a corporation purchase the stock of another corporation? a. To prevent double taxation of its shareholders b. Because dividends received by a corporation are partially tax-exempt c. It is equivalent to a tax carried forward d. It is equivalent to a tax carried back
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
A C-corporation has the following advantages EXCEPT limited liability avoiding double taxation shareholders may or may not manage the business easy to raise a large amount of capital O OOO
True or false: The corporation, and not the owners, are viewed as owning the resources and as owing the debts of the business. O True O False