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.

AppendixLO1