1. Decide whether each of the following statements is true or false.

a.	The policy-making body in a corporation is called the board of directors.
b.	The owner of 180 preferred shares has greater voting rights than the owner of 180 common shares.
c.	Issuance of 1,000 common shares of $14 per share increases share capital by $14,000.

d.	A corporation issues its preferred shares in exchange for land and a building with a combined fair value of $160,000. This transaction increases the corporation's owners' equity by $160,000 regardless of the assets' prior book values.
e.	Preferred shares are a riskier investment than common shares.