1.True or False? There are three criteria that must be met in order for a share purchase plan to be considered noncompensatory. If all three criteria are not met then the plan is considered compensatory.

2. Which of the following is not a characteristic of the corporate form of business entity?

a.Owners often are not an active part of management.

b. It is a separate legal entity.

c. It has an indefinite life span.

d. Owners have unlimited liability.

3. Smith Corp. has both Class A and Class B shares of common stock. The difference between the two classes of stock is most likely related to

a. Class A shareholders receiving dividends while Class B shareholders do not

b. Class A stock being worth more than Class B stock

c. Class A shareholders having better preemptive rights than Class B shareholders

d. Class A shareholders having greater voting rights than Class B shareholders

True or False? Noncontrolling interest reported on the balance sheet represents the amount of the net assets of a company that are owned by shareholders other than the common shareholders of that company.