Hana has prepared the following list of statements about corporations.Identify each statement as true or false.1.A corporation is an entity separate and distinct from its owners.2.As a legal entity, a corporation may buy, own, and sell property: borrow money; and enter into legallybinding contracts.3.Shareholders have the right to vote, and to receive dividends on an annual basis.4.The profit of a corporation is not taxed as a separate entity.5.Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation doesnot pay its debts.6.Ina public company, the transfer of shares from one owner to another requires the approval of either thecorporation or other shareholders.The board of directors of a corporation is elected by the shareholders.7.8.Corporations are subject to fewer provincial and federal regulations than partnerships or proprietorships.>>

When the owner and business both are treated as different persons known as separate legal entity.

Answered: Hana has prepared the following list of…

Hana has prepared the following list of statements about corporations. Identify each statement as true or false. 1. A corporation is an entity separate and distinct from its owners.

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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Question

Hana has prepared the following list of statements about corporations.
Identify each statement as true or false.
1.
A corporation is an entity separate and distinct from its owners.
2.
As a legal entity, a corporation may buy, own, and sell property: borrow money; and enter into legally
binding contracts.
3.
Shareholders have the right to vote, and to receive dividends on an annual basis.
4.
The profit of a corporation is not taxed as a separate entity.
5.
Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does
not pay its debts.
6.
Ina public company, the transfer of shares from one owner to another requires the approval of either the
corporation or other shareholders.
The board of directors of a corporation is elected by the shareholders.
7.
8.
Corporations are subject to fewer provincial and federal regulations than partnerships or proprietorships.
>
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