Which of the following is incorrect regarding for-profit corporations? Multiple Choice Most business are for-profit corp ons. They do not issue stock to their shareholders. The profit they generate may take the form of dividends paid by 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.

(Multiple Choice) A corporation can only pay dividends to shareholders from its:   1. Legal Capital   2. Authorized Shares   3. Retained Earnings   4. Contributed Capital   5. Share Capital

Which of the following statements are true regarding dividends? (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.) Corporations are often subject to fewer regulations than partnerships. Shareholders are not personally liable for corporate acts. It does not end with the death of an owner. The president and vice presidents choose the board of directors. Stockholders do not have the power to bind the corporation to contracts. Owners are personally liable for corporate debts. It has many of the same rights as an individual.

Hans

to be a personal holding company, the corporation must have been formed or availed of for the purpose of avoiding tax on the shareholders. true or false

Which of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.

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