Which of the following would not be trueof a privately held corporation? *It is sometimes called a closely heldcorporation.Its shares are regularly traded on the NewYork Stock Exchange.It does not offer its shares for sale to thegeneral public.It is usually smaller than a publicly heldcompany.

Privately held corporation is also known as closely held corporation as its shares are held by small…

Answered: Which of the following would not be…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 5RP

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What is the difference between a public and a private corporation? Choose the correct answer below. *** OA. The shares of a public corporation are owned by government offices or officials, while the shares of a private corporation are owned by individuals in the private sector. OB. The shares of a public corporation are traded on an exchange (or "over the counter" in an electronic trading system) while the shares of a private corporation are not traded on a public exchange OC. The shares of a public corporation can be traded between individuals, while the shares of a private corporation can only be traded between a single individual and the corporation issuing the shares OD. The shares of a public corporation can be held by any individual, while the shares of a private corporation can only be held by managers within the corporation.
One of the following is not an attribute of a close corporation: Restriction can be made prohibiting the transfer of stock to outsiders unless and until the corporation buys these stocks from the transferring stockholder. Management of the corporation may be entrusted to the stockholders rather than to a А. В. board of directors. The number of stockholders may exceed 20 persons The stocks are not listed in any stock exchange or offered to the public. С. D.
Which of the following statements is CORRECT? A The stock of publicly owned companies does not need to be registered with and reported to a regulatory agency such as the SEC. B When a corporation's shares are owned by a few individuals, we say that the firm is publicly traded. C "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. D When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an IPO," and the market for such stock is called the new issue or IPO market. E If a firm goes public, it will always raise additional new capital for the firm itself.
6. These give the holders the privilege to purchase shares of stocks at a price lower than the prevailing market price of the shares upon the issuance of new shares. 7. The difference of if the issue price is less than the par or stated value of the share. 8. A corporation which has no share capital and where no part of its income is distributable as dividends to its members. 9. A private corporation tasked by the government to provide public service. 10. The SEC issues the certificate of incorporation after this document is filed and duly approved.
Which of the following statements is NOT CORRECT? a. It is possible for a firm to go public and yet not raise any additional new capital for the firm itself. b. When a corporation's shares are owned by a few individuals, we say that the firm is "closely, or privately, held." c. The stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the SEC. d. When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an IPO," and the market for such stock is called the new issue or IPO market. e. "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.
Indicate whether each of the following statements is true or false. 1. The corporation is an entity separate and distinct from its owners. 2. 3. 4. 5. The liability of stockholders is normally limited to their investment in the corporation. The relative lack of government regulation is an advantage of the corporate form of business. There is no journal entry to record the authorization of capital stock. No-par value stock is quite rare today. False True
Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F. 1. A person of minor age can be a shareholder but can never be an incorporator in a corporation. 2. A corporation can be an incorporator in another corporation. 3. A share certificate can be issued to those subscribers who partially paid their subscriptions. 4. A corporation or business partnership can be an incorporator but not a corporator. 5. All partnership can be an incorporator in a corporation. 6. On January 10,2021, Ana paid 90% of her subscription in Jollibee Foods Corporation. She will receive her certificate of stock on January 10,2021. 7. Continued inoperation of a corporation for at least 5 consecutive years will result in its certificate of incorporation being deemed revoked. 8. In case of conflict between the by-laws and the corporation code, the code shall prevail.
Is it possible for a nonstock and stock corporation to merge? What happens with their share and their classification as a corporation?
Which, if any, of the following can be eligible shareholders of an S corporation? a. A Roth IRA. b. Partnership. c. A non-U.S. corporation. (Maybe) d. A nonqualifying trust. e. None of the above can own stock.
Which of the following is not a characteristic of the commonstock of a large, publicly owned corporation?a. The shares may be transferred from one investor toanother without disrupting the continuity of businessoperations.b. Voting rights in the election of the board of directors.c. A cumulative right to receive dividends. d. After issuance, the market value of the stock is unre-lated to its par value.
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. It has many of the same rights as an individual. The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. Stockholders are expected to hire and fire key executives. It does not end with the death of an owner. Corporate income that is distributed to shareholders is usually taxed twice. Corporations are often subject to fewer regulations than partnerships. The president and vice presidents choose the board of directors.
Which account cannot be used if a corporation has only one class of shares? a. Preference shares b. Ordinary shares c. Share Capital d. Accumulated profits

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