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4 The following list of statements about corporations are given below. 1. A corporation is an entity separate and distinct from its owners. 2. As

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4 The following list of statements about corporations are given below. 1. A corporation is an entity separate and distinct from its owners. 2. As a legal entity, a corporation has most of the rights and privileges of a person Most of the largest U.S. corporations are publicly held corporations. Corporations may buy, own, and sell property; borrow money, enter into legally binding contracts; and sue and be sued 5. The net income of a corporation is taxed as a separate entity. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholli it is entirely at the discretion of the stockholder 8 The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation. The chief accounting officer of a corporation is the controller. Corporations are subject to more state and federal regulations than partnerships or proprietorships 10. Andrea has studied the information above and has come with more statements about corporations Identify whether each statement is true or false Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership Limited liability of stockholders, overnment regulations, and additional taxes are the major disadvantages of a corporation When a corporation is formed, organization costs are recorded as an asset Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earning, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation The number of swed shares is always greater than or equal to the number of bothered shores d 5

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