The shareholder is usually liable for the corporation’s debts.

Q: Forming a limited liability company is one of the best ways to protect personal finances from…

A: LLC is one of the most versatile and flexible methods of business organisation which have features…

Q: An advantage of a corporation is that A-They have little government regulation. B-Owners have…

A: An advantage of a corporation is that C-Owners have limited liability for debt. This means that the…

Q: This is the type of long-term debt where creditors do not have recourse to the assets of the company…

A: In the field of finance and accounting, there are different types of debt that a company can have.…

Q: A constructive dividend is the manner in which the IRS or the courts recharacterizes an excessive…

A: Dividend is the part or share of profits which is being distributed or paid to the shareholders as…

Q: A bankruptcy court enters an order for relief. How does this action affect an insolvent company and…

A: Bankruptcy:   Bankruptcy is the elimination of different types of debts. The acceptance of…

Q: basic shareholders rights Group of answer choices The right to inspect the accounting records of the…

A: Shareholders are known as the owners of the company. And the control lies in their hands too. They…

Q: Describe Trade-Off theory.

A: Trade-Off theory suggests that there is an optimal capital structure that maximizes the value of the…

Q: If a company has any debt covenants, those debt covenants need to be considered whenever that…

A: Debt Covenant: Debt covenants are limits that lenders (creditors, debt holders, investors) impose on…

Q: Which of the following is a provision of the Sarbanes-Oxley Act? a. Lessens penalties for corporate…

A: More open and transparent reporting of financial information is required.  In response to corporate…

Q: It is usually easier for a C corporation to obtain debt hnancing compared to businesses organized in…

A: Business Financing -A small firm can obtain financing through a variety of methods. Financial…

Q: The disadvantages are: (Select all the choices that apply.) A. Income to a corporation is subject to…

A: Disadvantages of organizing a firm as a corporation:A. Income to a corporation is subject to double…

Q: Give one example each of moral hazard and adverse selection in private insurance arrangements. O A.…

A: Insurance is a financial arrangement in which an individual or entity (the policyholder) pays…

Q: What is the control requirement of § 351? Describe the effect of the following in satisfying this…

A: Sec. 351 allows a tax-free incorporation transfer if: a. The property must be transferred to a…

Q: Please no written by hand solutions A negotiable instrument that gives the owner a proportionate…

A: A negotiable instrument is a document or piece of paper that represents a legally enforceable right…

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: stock holders are not liable for a corporation's actions or debt true or false

A: Corporation is an legal entity which have own identity. The shock holders of corporation is known as…

Q: Pretzel acts as a sponsor in creating a special purpose entity (SPE) that will purchase Accounts…

A: Variable interest entity is a term used when an investor has controlling interest in the entity…

Q: Which of the following statements regarding bankruptcy is not true? A. Companies can be forced into…

A: Solution : Following statement regarding bankruptcy is true: 1. Companies can be forced into…

Q: Indicate whether the following statements is true or false. Provide the relevant explanations.   In…

A: The cost of capital is the rate of return that investors require to invest in a company's…

Q: “The debt of government-owned corporation is guaranteed by the full faith and credit of the U.S.…

A: Full faith and credit means the unconditional commitment and guarantee provided by government with…

Q: When a corporation is dissolved voluntarily, no winding up of the business is necessary. True False

A: Winding up of company actually means that assets of the company is sold out by liquidator and…

Q: What is a cram down?a. An agreement about the total amount of money to be reserved to pay creditors…

A: Answer:   Option b.