Andrea has prepared the following list of statements about corporations

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

3. Most of the largest corporations are privately held corporations

4. Corporations may , and sell property , borrow money : into legally binding contracts and sue and he 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 does not pay its debts

7. The transfer of stock from one owner to another requires the approval of either the corporation other stockholders

8. The board of directors of corporation legally owns the corporation

9. The chief accounting officer of a corporation is the controller .

10. Corporations are subject to fewer state and federal regulations thas partnerships or proprietarships

Instructions: Identify each statement as true or false. If false , indicate how to correct the statement.

Andrea has studied intormation you gave her in that exercise and has come to you with more statements about corporations

1. Corporation management is both advantage and disadvantage corporation compared to a proprietorship or partnership

2. Limited liability of stockholders, government regulationsand taxes are the major disad vantages of a corporation

3. When a corporation is formed, organization costs are recorded as an asset

4. Each of common stock gives the stockholder ownership rights to vote at stockholder meet ingsshare in corporate earningsthe same percentage ownership when new shares of stock are issued , and share in assets upon liquidation

5. The number issued shares is always greater than or equal to the number of authorized shares

6. A journal entry is required for the authorization of capital stock .

7. Publicly held corporations usually issue stock directly to investors .

The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor

9. The market price of common stock is usually the same as its par value

10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stock holders in exchange for capital stock . Instructions: Identify each statement as true or false. If false , indicate how correct the statement .