1. which of the following is not characteristic of a corporation? A. the financi

Question

1. which of the following is not characteristic of a corporation?

A. the financial loss that a stockholder may suffer from owning stock in a public company is limited to the amount invested.

B. a corporation can own property and its name.

C. corporations are required to file federal income tax returns.

D. corporations have less regulatory cost than other business forms.

2. one of the main disadvantages of the corporate form is?

A. professional management

B. the charter.

C. that a Corporation must issue stock.

D. double taxation

3. which of the following is not true of a corporation?

A. it may enter into binding legal contracts and its own name.

B. the owners are personally liable for corporate actions

C. it made by own and sell property

D. it may Sue and be sued

4. the entry to record the issuance of common stock at a price above par includes a credit to

A. organizational expenses

B. cash

C. paid in capital in excess of par common stock

D. preferred stock

5. the number of shares of stock data Corporation can issue as stated in its Charter is referred to as

A. Outstanding

B. Arrears.

C. authorised

D. issued

6. the number of shares remaining in the lands of shareholders after stock has been reacquired is referred to as the shares?

A. Outstanding

B. In arrears

C. authorised

D. issued

Explanation / Answer

1) which of the following is not characteristic of a corporation?

Solution: corporations have less regulatory cost than other business forms

Explanation: corporations have more regulatory cost than other business forms

2) one of the main disadvantages of the corporate form is?

Solution: double taxation

Explanation: double taxation of dividends is one of the main disadvantages of the corporate form

3) which of the following is not true of a corporation?

Solution: the owners are personally liable for corporate actions

Explanation: The major advantage of corporation is that the owners are not personally liable for corporate actions

4) the entry to record the issuance of common stock at a price above par includes a credit to

Solution: paid in capital in excess of par common stock

Explanation: the entry to record the issuance of common stock at a price above par includes a debit to cash and a credit to paid in capital in excess of par common stock

5) the number of shares of stock data Corporation can issue as stated in its Charter is referred to as

Solution: authorized shares

Explanation: Authorized shares are the number of shares of stock data Corporation can issue as stated in its Charter

6) the number of shares remaining in the lands of shareholders after stock has been reacquired is referred to as the shares

Solution: outstanding

Explanation: Outstanding shares are number of shares remaining in the lands of shareholders after stock has been reacquired is referred to as the shares

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