Why does a One Person Corporation shall not be required to have a minimum authorized capital stock?

Q: Should a corporation issue common stock or preferred stock and why?

A: Few companies offer both preferred and common shares. Most companies, on the other hand, only issue…

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: Which account cannot be used if a corporation has only one class of shares?    a. Preference shares…

A: When the company sells its share in order to accumulate capital such amount is called share capital.…

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: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: Which of the following statements is incorrect? New term for the corporation in the revised…

A: The preference shareholders have no rights and privileges as enjoyed by the equity share holder....…

Q: Which of the following are included in the total legal capital of a corporation assuming the…

A: Legal capital is the amount of capital that is reserved and not allowed to leave the business. It…

Q: Can the members of a non-stock corporation receive compensation

A: non stick corporations are that corporations which do not issue stock to members. Members who are…

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: How is preferred stock valued and after-tax Earnings of a corporation ultimately belong to whom?

A: Preferred stock is the form of stock which might have any combination of the features not possessed…

Q: How is book value per share computed for a corporation with no preferred stock? What is the main…

A: Book value per share with no preferred stock is computed by dividing the stockholders equity…

Q: Which of the following are included in the total legal capital of a corporation assuming the…

A: Solution: Legal capital means only par/stated value of common stock or preferred stock issued.

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: True (t) or False (f) _____ Bond interest paid by a corporation is an expense, whereas dividends…

A: Bonds are the certificates of loan taken by a corporation. It is typically secured in nature. The…

Q: If a corporation when formed sets a par value for its shares low and issue common  stock for a price…

A:

Q: Does the shareholders share of the corporations annual income increase the shareholders stock basis.

A: When a part of corporation's annual income is shared with the shareholders, it is known as cash…

Q: what are major categories of debt and stock for a corporation.

A: Several businesses and people employ debt to finance major purchases that they would not be able to…

Q: How treasury shares are measured and accounted for in the books of corporation?

A: Treasury stock is that stock that is reacquired from the shareholders by the issuing company to…

Q: Question 6 Which of the following is NOT a right possessed by common stockholders of a corporation?…

A: The common stockholders are considered as the owner of the organization and they have different…

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: What are the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

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: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?

A: Treasury shares are the shares that are brought back by the issuing entity from the open market from…

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: If the corporation when formed sets a par value for its shares low and issue common   stock for a…

A: Corporation can issue at its stock at par value, more than par value or below par value. For…

Q: . It is the governing body in a non-stock Corporation. *   A. Corporators B. Board of Directors…

A: Solution concept company with stock                 Company with stock means the company having the…

Q: Which of the following statements is incorrect? O New term for the corporation in the revised…

A: In the given case the company cannot issue shares more than the authorised capital of such shares..…

Q: Which statement is incorrect?  a. Book value per share is the claim of a shareholder in the net…

A: A share is the division in the capital of the company. A shareholder is entitled to receive division…

Q: If the corporation when formed sets a par value for its shares low and issue common stock for a…

A: Common stock: These are the shares that are issued by the company against the money which is…

Q: Identify which category of shareholder's equity is affected by each item and briefly explain how it

A: Shareholders equity is one of the important element of balance sheet of the business. It shows total…

Q: What if half of the voting stock is owned by another corporation which is not a close corporation,…

A: Voting stock: Percentage of stock that gives right to the holder to vote in the meetings is known as…

Q: If a corporation has only one class of stock, the account is entitled Common Stock or a.Preferred…

A: Common Stock are the ordinary shares of accompany. It represents the ownership in a company. Common…

Q: Interest on debt incurred to acquire shares in a public corporation is only deductible if the shares…

A: If the money is borrowed to purchase shares, the interest expenses will generally be deductible if…

Q: How much is the authorized share capital? How much is the issued share capital? How many shares of…

A: The authorized share capital is the maximum amount of share capital that the company is authorized…

Q: Is there a type of stock preferable over the other? Should a corporation also utilize borrowing if…

A: Equity Stock represents the equity shares of a company. Equity shares are the part of company owned…

Q: It is often said that the primary obejctive of a corporation is to maximize stockholder wealth. do…

A: According to the shareholder's target, the administration should aim to optimize the current value…

Q: What account should be debited when stock issuance costs are associated with the initial issuance of…

A: Stock issuance cost: Stock issuance cost refers to the expense which a corporation incurs while they…

Q: Identify the term being referred to: A lone entity in charge of issuing new shares on behalf of a…

A: Shares Issuing Charges: "Equity issuance fees" are the accounting phrase used to refer to the…

Q: Which of the following statements regarding an S-corporation is true? Select one: a. It must pay a…

A: S corporation is form of incorporation as a corporation as per IRS requirements. After meeting the…