29 Jun Question 1. The stockholders of a corporation have unlimited liability.
Question
1.
The stockholders of a corporation have unlimited liability.
A.
True
B.
False
2.
Which of these is not a major advantage of a corporation?
A.
Separate legal existence
B.
Continuous life
C.
Government regulations
D.
Transferable ownership rights
3.
Which one of the following is a major disadvantage of a corporation?
A.
Limited liability of stockholders
B.
Additional taxes
C.
Transferable ownership rights
D.
Limited life
4.
Which of the following is not a characteristic of a corporation?
A.
Separate legal existence
B.
Unlimited liability for stockholders
C.
Easy transfer of ownership interests
D.
Ability to acquire capital easily
5.
Which of the following is a disadvantage of the corporate business form?
A.
No income taxes
B.
Government regulation
C.
Continuous life
D.
Easy acquisition of capital
6.
Which of the following is not a stockholder’s right?
A.
The preemptive right
B.
The right to share in dividends
C.
The right to vote in the election for the board of directors
D.
The right to participate in management decisions
7.
Ernest, an individual, receives $100 from Vernon Corp. in dividends and is in the 28% tax bracket. Vernon Corp. already paid corporate taxes on the $100 at a 20% tax rate. How much in personal taxes will Ernest need to pay?
A.
$0
B.
$28
C.
$8
D.
$20
8.
The par value of corporate shares issued represents a corporation’s legal capital.
A.
True
B.
False
9.
Which of these statements is false?
A.
Ownership of common stock gives the owner a voting right.
B.
The stockholders’ equity section begins with paid-in capital amounts.
C.
The authorization of capital stock does not result in a formal accounting entry.
D.
Legal capital is intended to protect stockholders.
10.
If a corporation issues 1,000 shares of $3 par common stock for $7 a share, how much is the legal capital?
A.
$7,000
B.
$3,000
C.
$4,000
D.
$0
11.
Which of the following represents the amount per share of stock that must be retained in the business for the protection of corporate creditors?
A.
Legal capital
B.
Par value
C.
Market value
D.
Stated value
12.
Which of the following represents the maximum number of shares a corporation can issue?
A.
Outstanding shares
B.
Issued shares
C.
Authoriz
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.