Which of the following statements are true regarding corporations? Note: 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. ✔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. Stockholders do not have the power to bind the corporation to contracts. ? Stockholders are expected to hire and fire key executives. Owners are personally liable for corporate debts. ? It is a separate legal entity. ? Owners are not agents of the corporation.

Which of the following statements are true regarding corporations? Note: 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. ✔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. Stockholders do not have the power to bind the corporation to contracts. ? Stockholders are expected to hire and fire key executives. Owners are personally liable for corporate debts. ? It is a separate legal entity. ? Owners are not agents of the corporation.

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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The ability of any stockholder to transfer stock to another person without the knowledge or the consent of the other stockholders and without disturbing the normal activities of the corporation is called a. unlimited life. b. suitability for large scale operations. c. taxation of corporate earnings. d. transferable ownership units.
While corporations might have multiple issues of bonds or preferred stock, no corporations have multiple classes of common stock. While corporations might have multiple issues of bonds or preferred stock, no corporations have multiple classes of common stock. True False Give typing answer with explanation and conclusion
In some circumstances, corporations will buy back their own stock – called Treasury Stock. Identify three reasons why a company may choose to do so.
Under the corporate form of business organization, Group of answer choices a)ownership rights are easily transferred b)a stockholder is personally liable for the debts of the corporation c)stockholders’ acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation d)stockholders wishing to sell their corporate shares must get the approval of other stockholders
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.
True or False: An S Corporation will not be treated as having more than one class of stock solely because of differences in voting rights (i.e. both voting and non-voting common stock).
which of the following may be revoked by the board of directors after it has been declared? a) A share dividend b) An equitable distribution. c) a property prescription. d) a cash dividend