A corporation is treated as a separate legal entity; which means; if there is a legal dispute between the corporation and another party, the other party can take legal actions against the corporation rather than the individual shareholders or owners.

True

False

f Acme Corporation has 2,500 shares of 10%, $80 par value preferred stock outstanding on December 31, 2019. On December 31, 2019, the company declared a $75,000 cash dividend. The dividend paid to the preferred stockholders is $40000 if preferred stock is cumulative, and the company did not pay a dividend in the previous year.

True

False

If you own 500 preferred stocks of a corporation, it gives you the right to vote the company's board of directors and your vote as the preferred stockholder will get more preference over the common stockholder for selecting the board members. *

True

False