Of the following statements, which are true for the corporate form oforganization?1. Ownership rights cannot be easily transferred.2. Owners have unlimited liability for corporate debts.3. Capital is more easily accumulated than with most other forms oforganization.4. Corporate income that is distributed to shareholders is usually taxedtwice.5. It is a separate legal entity.6. It has a limited life.7. Owners are not agents of the corporation.

The corporate form of organization is a legal framework that enables the formation of an entity that…

Answered: Of the following statements, which are…

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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When a corporation is dissolved due to fraud, graft, and corruption, can innocent employees and stockholders have claims over the asset of the corporation after satisfying all its liabilities?
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
A corporate entity per se – has no direct relationship with its stockholders or members. has a personality distinct from its stockholders or members. has a separate proprietary interests on its assets, properties, and business enterprise from those of its stockholders or members. has to have stockholders or members to continue existing.
Why are corporations more difficult to form and subject to more government restrictions than the other forms of business organizations?
One of the disadvantages associated with sole proprietorships is that: raising working capital is difficult. acquiring total ownership of the business's finances is not easy. O creating a sole proprietorship is a complicated process. obtaining licenses and permits is difficult. making autonomous business decisions is difficult.
Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Corporate income that is distributed to shareholders is usually taxed twice. ? Corporations are often subject to fewer regulations than partnerships. ? The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? It has many of the same rights as an individual. ? It does not end with the death of an owner. ?Stockholders are expected to hire and fire key executives. ? The president and vice presidents choose the board of directors.
please answer correct in detail Identify each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization. 1. Seperate legal entity 2. Taxable entity resulting in additional taxes 3. Continuous life
The main disadvantages of a Corporation as a form of business organization include double taxation and unlimited liability of its shareholders. Question 5Select one: True False
Under the Corporate form of business: the corporation is subject to double taxation a shareholder can be personally liable for the debts of the corporation. shareholders can bind the corporation through mutual agency shareholders need the approval of the board of directors to sell their shares of stock the life of the corporation is limited
The corporation is the most effective form of business organization because the corporation has: Select one: a) easier access to financial capital through selling bonds and stocks b) an unlimited liability toward the stock owners c) the problem of double taxation with respect to the corporate income d) a lot of skilled and semi-skilled labourers e) more freedom of action with respect to management
Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.
Write T if the statement is true, and F if the statement is false and provide an explanation each item. 7. The ultimate control of the corporation rests with the board of directors. 8. Shareholders can transact business on behalf of the corporation.

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