1)

If a corporation declares and distributes a stock dividend on its common shares:

	a)	the amount of total assets increases.
	b)	the account Retained Earnings is decreased.
	c)	stockholders' equity decreases.
d)		contributed capital decreases.

2)

Advantages of the corporate form include all of the following except:

	a)	easy to raise capital.
b)		ownership interests are transferrable.
c)		shares can be purchased in small amounts.
d)		legal liability of its owners is unlimited.