Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation. To explain: Separate legal existence

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Marin Company is a manufacturer of smartphones. Its controller resigned in October 2025. An inexperienced assistant accountant has prepared the following income statement for the month of October 2025. Marin Company Income Statement For the Month Ended October 31, 2025 Sales revenue $998,400 Less: Operating expenses Raw materials purchases $337,920 Direct labor cost 243,200 Advertising expense 115,200 Selling and administrative salaries 96,000 Rent on factory facilities 76,800 Depreciation on sales equipment 57,600 Depreciation on factory equipment 39,680 Indirect labor cost 35,840 Utilities expense 15,360 Insurance expense 10,240 1,027,840 Net loss $(29,440) Prior to October 2025, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional…

Provide correct answer this general accounting question

Please answer the financial accounting

Answer 2

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Answer 6

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

Answer 7

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

Answer 8

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

Answer 13

(b)

To determine

To explain: Limited liability of stockholders

Answer 14

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

Answer 15

(b)

Expert Solution

Answer 16

(b)

Expert Solution

Answer 17

Expert Solution

Answer 18

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Answer 19

(c)

To determine

To explain: Transferable ownership rights

Answer 20

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.