Question
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.
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