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. ? Stockholders do not have the power to bind the corporation to contracts. ? The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? 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. ? Owners are not agents of the corporation. ? It has many of the same rights as an individual.

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. ? Stockholders do not have the power to bind the corporation to contracts. ? The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? 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. ? Owners are not agents of the corporation. ? It has many of the same rights as an individual.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following statements is NOT CORRECT? "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares Publicly owned companies have sold shares to ivestors who are not associated with management, and they must register with and report to a regulatory agency su as the SEC When stock in a dlosely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market It is possible for a firm to go public and yet not raise any additional new capital. O When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is "closely, or privately, held
In a close corporation, the controlling shareholders are usually the only people who manage and operate the company. True or False True False
Which of the following statements is true? a. Restrictive covenants in debt agreements are an effective way to reduce agency conflicts between stockholders and managers. b. Managers generally welcome hostile takeovers since they often increase the company’s stock price. None of the choices is correct. c. One advantage of organizing your business as a corporation is that your shareholders are not subject to limited liability. d. An effective ethics program can enhance corporate value by producing a number of positive benefits like building shareholder confidence.
Compliance A.while investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the securities Act of 1933 how does this influence you as a potential employee and as a shareholder? Be sure to reference any applicable statues of laws B.You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?
Which of the following are correct descriptions of large corporations? (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.) check all that apply Managers no longer have the incentive to act in their own interests.unanswered The corporation survives even if managers are dismissed.unanswered Shareholders can sell their holdings without disrupting the business.unanswered Corporations, unlike sole proprietorships, do not pay tax; instead, shareholders are taxed on any dividends they receive.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which feature is not applicable to common stock ownership?a. Right to receive dividends before preferred stockshareholders.b. Right to vote on appointment of external auditor.c. Right to receive residual assets of the company shouldit cease operations.d. All of the above are applicable to common stockownership.
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
A written authorization given by a shareholder to someone else to represent him or her and to vote his or her shares at the stockholders' meeting is called a coupon. a proxy. an indenture. none of these.
What is a good response to? A shareholder has a non-controlling interest in a company if the shareholder does not own enough equity in the company to shape decision-making at the firm (Hayes, 2024; “Non-controlling”, 2024). In order to determine the shareholder’s non-controlling interest balance in a company at the start of the period, the accountant first calculates the fair value of the non-controlling interest. Next, the employee calculates the change in the company’s retained earnings that is proportional to the non-controlling interest (Hoyle et al., 2024). The accountant adds this number to the fair value of the non-controlling interest. Then, the employee subtracts the excess fair value amortizations that are proportional to the non-controlling interest from the aforementioned amount (Hoyle et al., 2024). The result is the non-controlling interest balance at the start of the period. To calculate the non-controlling interest balance at the end of the period, the accountant adds…
TRUE OR FALSE. IF FALSE WHY. Shareholders elect the board of directors which appoints the management of a corporation.
When comparing common stock and preferred stock of the same company, it is fair to say that A. the Securities and Exchange Commission allows only one class of common stock. B. companies sometimes have two different classes of shares with unequal rights to dividends and votes. C. investors are indifferent between class A and class B shares. D. all shares, no matter how many classes, are all created with the same equal rights.