38. Which one of the following would NOT be considered an advantage of the corporate form of organization? A) Limited liability of stockholders. B) Separate legal existence. C) Continuous life. D) Government regulation. is/are considered the owners of a corporation. A) Board of Directors B) Shareholders / Common Stockholders C) Senior Management 40. The par value of a stock: A) is used to determine minimum legal capital balances at issuance. B) is the excess monies received after the stock is issued. C) is selected by the SEC. D) is the closing price of the stock on the day of issuance. 41. Ownership rights of common stockholders include: A) The right to vote in the election of the Board of Directors at the annual meeting and a vote on actions that require stockholder approval. B) The right to keep their same percentage ownership when new shares of stock are issued (preemptive right) C) The right to share in the corporate earnings through receipt of dividends. D) The right to share in the assets of the corporation upon liquidation. E) All of the above are rights of ownership for a common stockholder. 42. All of the following statements about preferred stock are true EXCEPT: A) Preferred stock will have a paid in-capital account that is separate from other stock. B) Preferred stock is presented on the stockholder's equity section C) There can be more than one class of preferred stock. D) All of the above are true statements about preferred stock. 43. Florida Travel Ine. Issues 5,000 shares of $5 par value common stock for $ 85,000. The journal entry to record this issuance would include: A) a debit to Paid-in Capital in Excess of Par of $60,000 B) a credit to Paid-in Capital in Excess of Par of $60,000 C) a credit to Common Stock for $25,000 and a debit to cash for $85,000 D) A and C E) B and C