26-28

26) Which statement is False asit reg ards Characteristics of a Corporation: a) b) c) d) Its owners are not partners but stockholders and own the corporation. Payment of dividends reduces the cash flow in the financing activities. Common Stock is the only type of stock. Common Stock votes for the Board of Directors and the Chair of the Corporationl a) b) c) d) A is False B is False C is False D is False 27) Which statement is False as it regards Forming a Corporation First an application is filed with the state of incorporation. The State issues a Charter or Articles of Incorporation which list the amount of stock a company can issue. Stockholders have unlimited liability. The authorized stock which is sold on the market is a. b. c. d. A) A is False B) B is False C) C is False D) D is False 28) Which statement is False as it Stockholders Equity tion is known as the stockholders A. The shareholder's investment in the corpora B. C. D. equity. New Income retained in a business is known as Retained Earnings. Dividends are distributions of a corporation's earnings. Stockholders liability is unlimited. A) A is False B) B is False C) C is False d) d IS False