1. A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a corporation is organized for the purpose of making a profit. b. corporation is subject to more federal and state govemment regulations. c. corporation is an accounting economic entity d. corporation's temporary accounts are closed at the end of the accounting period. 2. Andy Eggers has invested $150,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Eggers stand to lose? a. Up to his total investment of $150,000. b. Zero c. The $150,000 plus any personal assets the creditors demand. d. $100,000 3. Which one of the following is not an ownership right of a stockholder in a corporation? a. To vote in the election of directors b. To declare dividends on the common stock c. To share in assets upon liquidation d. To share in corporate earnings 4. If no-par stock is issued without a stated value, then a. the par value is automatically $1 per share. b. the entire proceeds are considered to be legal capital. c. there is no legal capital. d. the corporation is automatically in violation of its state charter. 5. If a corporation has only one class of stock, it is referred to as a. classless stock b. preferred stock. c. solitary stock. d. common stock 6. Which of the following factors does not affect the initial market price of a stock? a. The company's anticipated future eamings b. The par value of the stock c. The current state of the economy d. The expected dividend rate per share