True or False. a corporation is cease to exist when its shareholders sell their stock.
Q: When a company retires its own common shares, the company must a.decrease the common share account…
A: Retirement of the company's own shares means the cancelling of original issued shares.
Q: ne reason why corporations issue preferred stock is to raise money without giving up control, as…
A: Preferred stockholders does not have voting rights.p Preferred shares receive a fixed amount of…
Q: Owners of preference shares often do not have: A Voting rights. B The right to sell their shares…
A: Solution- Preference shares, more commonly referred to as preferred stock, are shares of a company’s…
Q: Which of the following reduces a shareholder's S corporation stock basis?
A: S corporation is the corporation which has been started by the shareholders of the company and it…
Q: If a company’s constitution does not contain rules governing the forfeiture of shares, then the…
A: The correct option with explanation are as follows. Forfeiture of share means cancellation of share…
Q: A corporation cannot survive if the original owners are the only ones to invest in terms of equty…
A: Equity financing is the method of getting capital in exchange for partial ownership of the company.…
Q: The right of common stockholders to pro corporation by having the first opportunity to buy additi…
A: The person that is having stock of the company care called stockholders. The charter of the…
Q: true or false A corporation may NOT legally invest in the bonds of another corporation
A: A corporation is a form of business organization that is legally formed and has a group of people…
Q: The liability of stockholders is normally limited to their investments in the corporation true…
A: The stockholders are considered as the owner of the corporation and the liability is limited to…
Q: If a company chooses to purchase its own shares and then either (1) retires the repurchased shares…
A: Common shares: Common shares is the instrument used by the company for raising funds from the…
Q: True or false Corporations are legal entities separate from their owners and offer the…
A: 1. Corporation's main advantage is that the entity is separate from the owners. Hence the liability…
Q: basic shareholders rights Group of answer choices The right to inspect the accounting records of the…
A: Shareholders are known as the owners of the company. And the control lies in their hands too. They…
Q: A corporation cannot be held liable for personal indebtedness of a stockholder even if he is its…
A: There are various form of business organization
Q: The dividend is not a legal liability until the board of directors has declared it. true or false.…
A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…
Q: Corporations recognize no gain orloss when it issues stock shares for property even if the…
A: Section 351 states non recognition or not recording of the gain or loss on the property transfers…
Q: Which of the following is not a characteristic of the commonstock of a large, publicly owned…
A: When a corporation issues stock to persons, then these are known as owners or shareholders of the…
Q: corporation might have treasury stock listed on their financials for all the following reasons…
A: solution concept treasury stock means the stock that is bought back by the company When the stock is…
Q: Is there any consequences if one person corporation (OPC) was not put before or at the end of a…
A: The one person company means a company formed with only one single person or a member.
Q: Limited liability is a disadvantage of corporation companys? true or false
A: Limited liability refers to the term that means in case of insolvency of the business, personal…
Q: When can a company forfeit its shares?
A: The mechanism by which a corporation forfeits the stock of an investor or stockholder who ceases the…
Q: What would happen to the corporation if it failed to file by-laws? Would it dissolve the corporation
A: Meaning of Corporation: It refers to a legal entity which is distinct from its owners. Corporations…
Q: Which of the following is incorrect regarding for-profit corporations? Multiple Choice Most business…
A: Corporations are the entity created by laws. Corporation can be two types, one is formed for profit…
Q: Which of the following would not be true of a privately held corporation? * It is sometimes called a…
A: Privately held corporation is also known as closely held corporation as its shares are held by small…
Q: In a close corporation, the controlling shareholders are usually the only people who manage and…
A: A close corporation is a corporation which does not exceed a statutory defined number of members…
Q: Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…
A: 1. A corporation is a legal entity i.e. it is a separate entity from its owners (shareholders). A…
Q: if an item of accounting information is released by a corporation and there is no apparent change in…
A: If we take it as a view point from the capital market, and if we assume that the equity markets are…
Q: True or False? Dividends should be authorized by the shareholders of the corporation.
A: Dividend distribution is a method of distributing profit among the stockholder of the organization.…
Q: What is the effect on a corporation when it goes bankrupt?
A: Bankrupt happens when the corporation has insufficient funds to pay off the liability (or when it is…
Q: The cost of equity is the rate associated with what the shareholders expect the corporation to earn…
A: Equity refers to the amount contributed by the owners of a entity i.e. shareholders of a entity.
Q: Why do the basis and at-risk rules usually prevent the same amount of losses from passing through to…
A: An S Corporation is treated more like a partnership than a C Corporation. So, S Corporation is a…
Q: A director must be a shareholder in a corporation. True or False True False
A: Shareholders and directors are two very distinct roles within a limited company. In simple terms,…
Q: Select the best term for each definition below.
A: Shareholders’ equity: Shareholders’ equity refers to the right the owner possesses over the…
Q: When a corporation is dissolved voluntarily, no winding up of the business is necessary. True False
A: Winding up of company actually means that assets of the company is sold out by liquidator and…
Q: Which of the following is not a right of owners of common shares? Residual assets in liquidation…
A: A company has several sources from where it can raise funds. It can issue equity shares and the…
Q: Which activities changes equity but does not affect a corporation's assets and liabilities?
A: Changes in equity: The amount of equity changes due to increase or decrease in the business…
Q: When a corporation is dissolved due to fraud, graft, and corruption, can innocent employees and…
A: Liabilities are referred, when the money is borrowed and there is obligation to pay that sum of…
Q: TRUE OR FALSE. IF FALSE WHY. Shareholders elect the board of directors which appoints the…
A: Shareholders:- These are those investors who invested in the share capital of the company. In…
Q: Which characteristic of a corporation is a disadvantage? a. Mutual agency b. Double taxation c.…
A:
Q: If a corporation files bankruptcy and is liquidated, who should get paid first: the corporation’s…
A: Bondholder: A bondholder is an investor of bonds in the issuer's firm. The issuer pays the…
Q: An S Corporation will not be treated as having more than one class of stock solely because of…
A: S corporation is allowed to have only one class of stock. The companies are allowed to issue voting…
Q: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation. 2.…
A: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation.…
Q: Which of the following is not an advantage of the corporate form of business? a. limited liability…
A: Corporate is a popular form of business for the large and small industry. These types of business…
Q: Which of the following liquidating dividend is not legal? a. Liquidating dividend of a continuing…
A: When a firm is insolvent and unable to pay its debts, it may be liquidated. At the time of…
True or False.
a corporation is cease to exist when its shareholders sell their stock.
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- Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation.True or False: An S Corporation will not be treated as having more than one class of stock solely because of differences in voting rights (i.e. both voting and non-voting common stock).A corporation may not deduct dividends paid to shareholders but is permitted to deduct reasonable compensation? True or False
- A stockholder dissatisfied with the management of the corporation done by the Board of Directors surrenders his certificate of stocks and demands the return of the subscription price paid by him. Can he rightfully do this? Explain.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 liabilityWhich 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 liability
- all of the following are true about the issuance of non-voting common stock except a. it has been issued when the corporation wishes to raise capital through the sale of common stock but does not want to relinquish its voting control o b. it has been issued as a defense against an unfriendly takeover c it tends to result in the dilution of voting rights of current stockholders od. it tends to result in unequal voting rights among the shareholderswhich characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation ?When a corporation is dissolved due to fraud, graft, and corruption, can innocent employees and stockholders have claims over the asset of the corporation after satisfying all its liabilities?
- Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? 2. What does the term par value of stock mean? please list credible references for informationThe 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.A corporation cannot be held liable for personal indebtedness of a stockholder even if he is its President. TRUE FALSE By the doctrine of piercing the veil of corporate entity or looking at the substance rather than the form is meant that the law will regard the corporation as a mere association of persons and not of a legal entity separate and distinct from the stockholders. TRUE FALSE No par value shares may not be issued without being fully paid. TRUE FALSE Redeemable shares may be purchased or taken up by the corporation upon the expiration of a fixed period, regardless of the existence of unrestricted retained earnings in the books of the corporation. TRUE FALSE Treasury shares shall have no voting rights as long as they remain in the Treasury TRUE FALSE Treasury shares are entitled to participate in the distribution of dividends. TRUE FALSE