Which of the following is a false statement concerning corporations? Select one: a. The corporation has unlimited liability for business debts. O b. The life of the corporation is unlimited. O c. When dividends are paid, net corporate profits are essentially taxed twice. O d. It is relatively simple to transfer ownership of corporate shares. Clear my choice

Which of the following is a false statement concerning corporations? Select one: a. The corporation has unlimited liability for business debts. O b. The life of the corporation is unlimited. O c. When dividends are paid, net corporate profits are essentially taxed twice. O d. It is relatively simple to transfer ownership of corporate shares. Clear my choice

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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Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. ? Ownership rights cannot be easily transferred. ? Owners have unlimited liability for corporate debts. ? Capital is more easily accumulated than with most other forms of organization. ? Corporate income that is distributed to shareholders is usually taxed twice. ? It is a separate legal entity. ? It has a limited life. ? Owners are not agents of the corporation. ..........
An individual provides accounting services to a corporation in exchange for stock. the shareholder must recognize income and the corporation may deduct or capitalize the expenditure as would be deemed appropriate. A. True B. False
Decide which of the following statements are true. I. In most circumstances, the owners of corporations enjoy reduced liability, increased liquidity and greater growth potential than owners of other forms of business. II. The term "LLC" or "Limited Liability Company", is a corporation that elects to limit liability for its shareholders through the use of off-shore and special purpose entities. II. The corporate form of business can help shield its owners from the liabilities of the corporation. Select one: O a. One is true. O b. Two are true. O C. All are true. O d. All are false.
Which of the following is a disadvantage of the corporate form of organization? difficulty in raising capital unlimited liability of the owners finite life of the organization the tax treatment of dividends
Which of the following is not primary reason why corporation invest in debt . Select one: a. they are required by law b. they wish to move into new market c. they have excess cash d. they wish to gain control of competitor
True or False? Dividends should be authorized by the shareholders of the corporation.
Why do you think a single WACC is not applicable to all businesses in a corporation?
* Explan.
Public corporations: Multiple Choice are businesses whose stock is bought and sold on a stock exchange. are businesses owned by two or more people, each of whom is personally liable for the debts of the business. are businesses whose stock is bought and sold privately. are setup for non-profit purposes.
Identify if statements are true for the corporate form of organization. Corporate income that is distributed to shareholders is usually taxed twice.
Write T or F. Then briefly explain. 1. Shareholders can transact business on behalf of the corporation. 2. All incorporators are shareholders but not all shareholders are incorporators.
What is the effect on a corporation when it goes bankrupt?

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