1. Which of the following is not a major advantage of a corporation? 1. Separate legal existence. h. Continuous lifc. c. Government regulations d. Transferable ownership rights 2. A major disadvantage of a corporation is: a. limited liability of stockholders b. additional taxes c. transferable ownership rights. d. None of the above 3. Costs incurred in the formation of a corporation: m. do not include legal fees. b. are expensed as incurred. e are recorded as an asset. d. provide future benefits whose amounts and timing arc casily determined 4. Which of the following statements is false? 1. Ownership of common stock gives the owner a voting right b. The stockholders' equity section begins with paid-in capital c. The authorization of capital stock does not result in a formal accounting entry d. Legal capital per share applies to par valuc stock but not to no-par value stock 5. Total stockholders' equity (in the absence of treasury stock) equals Total paid-in capital + Retained earnings b. Paid-in capital + Capital stock + Retained earnings e. Capital stock + Additional paid-in capital - Retained carnings d. Common stock + Retained earnings 6. The account Retained Earnings is 3. a subdivision of paid-in capital. b. net income retained in the corporation c reported as an expense in the income statement d. closed to capital stock