Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. ✔The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? It has many of the same rights as an individual. Stockholders do not have the power to bind the corporation to contracts. ? Stockholders are expected to hire and fire key executives. Owners are personally liable for corporate debts. ? It is a separate legal entity. ? Owners are not agents of the corporation.

Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. ✔The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? It has many of the same rights as an individual. Stockholders do not have the power to bind the corporation to contracts. ? Stockholders are expected to hire and fire key executives. Owners are personally liable for corporate debts. ? It is a separate legal entity. ? Owners are not agents of the corporation.

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter3: Ethical Behaviour- Philosophers Contributions

Section: Chapter Questions

Problem 5Q

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Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. It has many of the same rights as an individual. The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. Stockholders are expected to hire and fire key executives. It does not end with the death of an owner. Corporate income that is distributed to shareholders is usually taxed twice. Corporations are often subject to fewer regulations than partnerships. The president and vice presidents choose the board of directors.
Which of the following statements are true regarding dividends? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Corporations are often subject to fewer regulations than partnerships. Shareholders are not personally liable for corporate acts. It does not end with the death of an owner. The president and vice presidents choose the board of directors. Stockholders do not have the power to bind the corporation to contracts. Owners are personally liable for corporate debts. It has many of the same rights as an individual.
Which of the following statements is NOT correct about the rights granted to common stockholders? Group of answer choices a. Stockholders may transfer their right to vote to a second party by means of a proxy. b. Dividends due to common stockholders are cumulative. c. Common stockholders have the right to elect a firm's directors. d. In large, publicly traded firms, managers typically have some stock but their personal holdings are generally insufficient to win voting control.
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.
16. Which of the following statements is NOT correct about the rights granted to common stockholders? a. Stockholders may transfer their right to vote to a second party by means of a proxy. b. Dividends due to common stockholders are cumulative. c. Common stockholders have the right to elect a firm's directors. d. In large, publicly traded firms, managers typically have some stock but their personal holdings are generally insufficient to win voting control.
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. 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.
Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) ? Ownership rights cannot be easily transferred. ? Owners have unlimited liability for corporate debts. ? Capital is more easily accumulated than with most other forms of organization. ?Corporate income that is distributed to shareholders is usually taxed twice. ? It is a separate legal entity. ? It has a limited life. ? Owners are not agents of the corporation.
. Buying shares in a corporation is attractive to investors because: a All of these answers are correct. b Shares are easily transferred c Shareholders are not liable for the corporation's actions and debts d Shareholders are not agents of the corporation e A corporation has unlimited life. PLEASE EXPLAIN YOUR ANSWER AND DO NOT COPY FROM OTHER SOURCES AND ALSO NOT GIVEN IN IMAGE FORMAT
Which of the following is not a right of an ordinary shareholder? Select one: O a. None of the answers are correct. O b. Right to receive dividends. O C Share in assets at liquidation. Od. Right to record cash transactions. O e. Right to vote and elect the board of directors.
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.
Your friend is considering incorporating and asks for advice. Which of the following is not a major concern? A. colors for the logo B. which state in which to incorporate C. number of shares of stock to authorize D. selection of the corporation name
Which of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.