1. Only the sole proprietorship and partnership forms of business organization can resort to borrowing as their source of funds. 2. Only a corporation can issue shares of stock to the public as a source of its capital. 3. Corporation has more options on the manner it raises its capitalization, as compared to other forms of business organization.
1. Only the sole proprietorship and partnership forms of business organization can resort to borrowing as their source of funds. 2. Only a corporation can issue shares of stock to the public as a source of its capital. 3. Corporation has more options on the manner it raises its capitalization, as compared to other forms of business organization.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:True or False
1. Only the sole proprietorship and
partnership forms of business organization
can resort to borrowing as their source of
funds.
2. Only a corporation can issue shares of
stock to the public as a source of its capital.
3. Corporation has more options on the
manner it raises its capitalization, as
compared to other forms of business
organization.
4. A bond certificate is a contract of debt.
5. Stockholders are investees in a
corporation.
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