Indicate whether each of the following statements is true or false. 1. The corporation is an entity

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Indicate whether each of the following statements is true or false.

1. The corporation is an entity separate and distinct from its owners.

2. The liability of stockholders is normally limited to their investment in the corporation.

3. The relative lack of government regulation is an advantage of the corporate form of business.

4. There is no journal entry to record the authorization of capital stock.

5. No-par value stock is quite rare today.


Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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