Which of the following is a characteristic of a corporation?a. No income taxb. Limited liability of stockholdersc. Mutual agencyd. Both b and c

The ability of any stockholder to transfer stock to another person without the knowledge or the consent of the other stockholders and without disturbing the normal activities of the corporation is called a. unlimited life. b. suitability for large scale operations. c. taxation of corporate earnings. d. transferable ownership units.

Which business entity could have common stock authorized? O A. a sole proprietorship O B. a partnership O C. a limited liability company O D. a corporation O E. All of the above could theoretically have common stock authorized.

Which of the following is an advantage of ownership of a corporation over that of a sole proprietorship? I. The owners of the corporation have unlimited liability for the firm's debts II.It is the simplest to start III. The corporation has an unlimited life. IV. Dividends recieved by the corporation's shareholders are tax-exempt a. I only b. II only c. III only d. II and III only e. II and IV only

Why would a corporation purchase the stock of another corporation?     a. To prevent double taxation of its shareholders     b. Because dividends received by a corporation are partially tax-exempt     c. It is equivalent to a tax carried forward     d. It is equivalent to a tax carried back

Which activities changes equity but does not affect a corporation's assets and liabilities?

Which of the following statements is true? A. the organizational form that is the easies to raise capital is the corporation B. corporations make up the largest proportion of businesses in the U.S C. sole proprietorships are protected by limited liability D. owners of corporations are not protected by limited liability

Which financial instrument represents ownership in a corporation and entitles the holder to a share of the companys profits? a. Bond b. Preferred Stock c. Common Stock d. Debenture

Which of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liability

Which of the following statements is true in relation to a limited liability company? A A limited liability company can incur liabilities in its own name B A limited liability company cannot acquire assets in its own name C A limited liability company cannot incur liabilities in its own name D A limited liability company can be formed on an informal basis by simple agreement between the first sharehoplders