Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. A shareholder may bind (obligate) the corporation to a contract. b. The policy-making body in a corporation is called the board of directors. c.

a.

A shareholder may bind (obligate) the corporation to a contract.

b.

The policy-making body in a corporation is called the board of directors.

c.

The owner of 100 preferred shares has greater voting rights than the owner of 100 common shares.

d.

A company incorporated under the Canada Business Corporations Act must assign the proceeds of a share issue to the capital account for that type of share.

e.

All common shares issued and outstanding have equal voting rights.

f.

Issuance of 1,000 common shares at $12.00 per share increases shareholders' equity by $12,000.

g.

The stated value of a share is the value assigned to the shares by the company issuing them at the date issued.

h.

A corporation issues its preferred shares in exchange for land and a building with a combined market value of $200,000. This transaction increases the corporation's shareholders' equity by $200,000 regardless of the assets' prior book value.

Are these true or false?

For each false statement, please explain why it is a false.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Audit Is An Audit Is An Audit

Authors: Marina Peters

1st Edition

B08B37VNZ6, 979-8652328412

More Books

Students also viewed these Accounting questions