1. In the United States, businesses and other organizations must operate as one of three baga forms. Which of the following is not considered one? a. Corporation b. Controllership c. Proprietorship d. Partnership 5.Which of the following rights is most typical for the owners of a corporation's common stock? A. The right to vote for the members of the board of directors B. The right to an annual dividend C. The right to be involved in policy-making decisions D. The right to decide on the issuance of cash dividend 10. Paul Mitchell purchased a licensing agreement for $40,000 from a well-known restaurant chain. Subsequently, Traylor Corporation agreed to issue 2,000 shares of its common stock to Mitchell in exchange for this licensing pgreement, which now has a value of $30,000. At the time of the exchange, Traylor's $2 par value stock was selling for $14 per share. For what amount should Traylor report the licensing agreement? a. $4,000 b. $28,000 c. $30,000 d. $40,000 13. How is treasury stock reported in the financial statements? a. As an addition to stockholders' equity in the balance sheet. b. As a reduction to stockholders' equity in the balance sheet. c. As a gain listed at the bottom of the income statement. d. As a loss listed at the bottom of the income statement. 17. Kramer Company is authorized by the state to issue 10,000 shares of 8 percent, $100 par value preferred stock. On January 1, Year One, Kramer issues 5,000 shares for $125 per share. On December 13, Year One, Kramer's board of directors declares the annual dividend to owners on record as of January 3, Year Two. The dividend will be distributed January 18, Year Two. What liability should Kramer Company report on its December 31, Year One, balance sheet as a result of this dividend? a. Zero B. $40,000 c. $50,000 d. $80,000 23.Falls Church Corporation ended Year Four with revenues of $98,000 and expenses of $86,000. The company distributed a cash dividend of $8,000 during the year. No stock transactions occurred. On the year-end balance sheet, the stockholders' equity accounts total $492,000. Which of the following is Falls Church's return on equily (ROE) for the year? a. 2.45% b. 6.73% c. 9.18% d. 9.75%