Acct-210 Chapter 11

The ability of a corporation to obtain capital is Select one: A. enhanced because of limited liability and ease of share transferability. B. less than a partnership. C. restricted because of the limited life of the corporation. D. about the same as a partnership.

A. enhanced because of limited liability and ease of share transferability. Correct

The two ways that a corporation can be classified by ownership are Select one: A. publicly held and privately held. B. stock and non-stock. C. inside and outside. D. majority and minority.

A. publicly held and privately held. Correct

Stockholders of a corporation directly elect Select one: A. the president of the corporation. B. the board of directors. C. the treasurer of the corporation. D. all of the employees of the corporation.

B. the board of directors. Correct

Under the corporate form of business organization Select one: A. a stockholder is personally liable for the debts of the corporation. B. stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation. C. the corporation's life is stipulated in its charter. D. stockholders wishing to sell their corporation shares must get the approval of other stockholders.

C. the corporation's life is stipulated in its charter. Correct

Treasury stock is Select one: A. stock issued by the U.S. Treasury Department. B. stock purchased by a corporation and held as an investment in its treasury. C. corporate stock issued by the treasurer of a company. D. a corporation's own stock, which has been reacquired and held for future use.

D. a corporation's own stock, which has been reacquired and held for future use. Correct

Par value Select one: A. represents what a share of stock is worth. B. represents the original selling price for a share of stock. C. is established for a share of stock after it is issued. D. is the value assigned per share in the corporate charter.

D. is the value assigned per share in the corporate charter. Correct

A business organized as a separate legal entity owned by stockholders is a partnership. Select one: True False

False

If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation. Select one: True False

False Correct

A stockholder has the right to vote in the election of the board of directors. Select one: True False

True Correct

Preferred stock has contractual preference over common stock in certain areas. Select one: True False

True Correct