Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 4PS
Summary Introduction
To determine: The statements that apply to corporations.
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Students have asked these similar questions
Which type of business has ownership interests that cannot be transferred to other parties without some restrictions?
O a. Both Corporate and limited liability company
O b. None of the options
O. Corporate business
O d. Limited liability company
which of the which of the following statements always apply to corporations
a. unlimited liability
b. limited life
c. ownership can be transferred without affecting operations
e. managers can be fired with no effect on ownership
Which of this statement shows the advantage to form a corporation? Select one:
a. Owner must absorb all losses
b. Ability to raise large amounts of capital is increased
c. Control of corporation not guaranteed by partial ownership of stock
d. Business terminates immediately upon death of owner
Chapter 1 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Ch. 1.A - Prob. 1QCh. 1 - Investment and financing decisions Read the...Ch. 1 - Investment and financing decisions Which of the...Ch. 1 - Prob. 3PSCh. 1 - Prob. 4PSCh. 1 - Prob. 5PSCh. 1 - Opportunity cost of capital FH Corp. continues to...Ch. 1 - Corporate goals We can imagine the financial...Ch. 1 - Maximizing shareholder value Ms. Espinoza is...Ch. 1 - Prob. 9PS
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Similar questions
- Limited liability is a disadvantage of corporation companys? true or falsearrow_forwardIn a close corporation, the controlling shareholders are usually the only people who manage and operate the company. True or False True Falsearrow_forwardDirection: 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 corporation can be formed by mere agreement among shareholders. 2. Shareholders are not liable to corporate obligations in excess of their contribution. 3. Authority of the corporation to operate has to be granted by the state. 4. Death of a shareholder will dissolve the corporation. 5. Shares cannot be transferred without the consent of the other shareholders. 6. All incorporators are subscribers but a subscriber need not be an incorporator. 7. The ultimate control of the corporation rests with the board of directors. 8. Shareholders can transact business on behalf of the corporation. 9. All incorporators are shareholders but not all shareholders are incorporators. 10. In a corporation, minority shareholders are compliant to the wishes of the majority.arrow_forward
- Which of the following is not a characteristic of a corporation? a.Corporations experience an ease in obtaining large amounts of resources by issuing stock. b.A corporation's resources are limited to its individual owners' resources. c.Ownership is divided into shares of stock. d.Corporations are organized as a separate legal taxable entity.arrow_forwardThe 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.arrow_forwardIs there any consequences if one person corporation (OPC) was not put before or at the end of a supposedly OPC corporate name? If there is, what would it be?arrow_forward
- 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 liabilityarrow_forwardWhich 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? Question 7Answer a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liabilityarrow_forwardOwners have no personal liability under which legal business structure? A. a corporation B. a partnership C. a sole proprietorship D. There is liability in every legal business structure.arrow_forward
- Which of the following is not a characteristic of a corporation? a.Corporations experience an ease in obtaining large amounts of resources by issuing stock. b.Corporations are organized as a separate legal taxable entity. c.Ownership is divided into shares of stock. d.A corporation's resources are limited to its individual owners' resources.arrow_forwardOne of the following characteristics of a corporation is deemed a disadvantage. Which is it? a. Ownership transfer b. Double Taxation c. Easy Ability to Raise Capital d. Limited Liability Protection e. None of the above.arrow_forwardWhich of the following is not an advantage of the corporate form of business organization? a) unlimited life b) transferability of ownership c) limited liabilitiy of stockholders d) unlimited personal. liability for stockholdersarrow_forward
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