Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation. To explain: Separate legal existence

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Answer 1

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

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Students have asked these similar questions

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.

Characteristics of a corporation include a.shareholders who are mutual agents b.direct management by the shareholders (owners) c.shareholders who have limited liability d.its inability to own property

Write T if the statement is correct and F if the statement is incorrect. On the space provided, briefly 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.

Answer 2

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

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Answer 3

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

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Answer 4

Question

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

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Answer 5

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Answer 6

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

Answer 7

Chapter 11, Problem 1Q

(a)

To determine

Corporation: A business concern where there is a separate legal entity, and are owned by shareholders, are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. The liabilities of the stockholders to its creditors is limited up to their invested capital amount in the corporation.

To explain: Separate legal existence

Answer 8

(a)

Expert Solution

Explanation of Solution

A Corporation has a separate legal existence. It means that the ownership and management are two separate bodies in a corporation. It is not identified by the name of the owners rather identified by its own name. The real owners of the corporation are the shareholders who invests money in the corporation. However, they do not participate in the management of the corporation’s business activities.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

To explain: Limited liability of stockholders

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

Answer 13

(b)

To determine

To explain: Limited liability of stockholders

Answer 14

(b)

Expert Solution

Explanation of Solution

The liability of a corporation is limited. It means that the liability of a stockholders is limited only to the extent of their investment amount. This is because, a corporation is a separate legal entity. Thus, the corporation is liable to settle all its debts and obligations from the assets available in the corporation.

Answer 15

(b)

Expert Solution

Answer 16

(b)

Expert Solution

Answer 17

Expert Solution

Answer 18

(c)

To determine

To explain: Transferable ownership rights

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Answer 19

(c)

To determine

To explain: Transferable ownership rights

Answer 20

(c)

Expert Solution

Explanation of Solution

The stockholders gain ownership of a corporation by buying its shares. Being the owners, the stockholders have the complete right to sell a part or all of their shares and thus, easily transfer their ownership to another party without disturbing the normal business operations of a corporation.

Answer 21

(c)

Expert Solution

Answer 22

(c)

Expert Solution

Answer 23

Expert Solution

Answer 24

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - Prob. 7Q Ch. 11 - Which is the boiler investmentcommon stock with a...Ch. 11 - Prob. 9Q Ch. 11 - Prob. 10Q

Explanation of Solution

To explain: Limited liability of stockholders

Explanation of Solution

To explain: Transferable ownership rights

Explanation of Solution

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Chapter 11 Solutions