ACT 210 - ACCOUNTING FOR FINANCIAL DECISION MAKING CHAPTER 13-IN-CLASS ACTIVITY PROBLEM 1: Angela has prepared the following list of statements about corporations. Identify each statement below as TRUE or FALSE. 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. 3. Most of the largest U.S. corporations are privately held corporations. 4. Corporations may buy, own, and sell property; borrow money; enter into legal binding contracts; and sue and be sued. 5. The net income of a corporation is not taxed as a separate entity. 6. Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. 8. The market price of common stock is usually the same as its par value. 9. The number of issued shares is always greater than or equal to the number of authorized shares. 10. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders