= III > Normal Body 1. All of the following represent advantages of corporations over other business entities except: A) unlimited shareholders' liability B) continuity of existence C) separate legal entity D) ease of transferring ownership 2. Which of the following is a disadvantage of the corporate form of business organization? A) mutual agency B) government regulation C) limited liability D) difficulty in transferring ownership 3. Share capital (or contributed capital) represents: A) investments by the creditors of a corporation B) capital that the corporation has earned through profitable operations C) investments by the shareholders of a corporation D) retainet earnings 4. Retained earnings A) is classified as an asset on the corporate balance sheet B) is part of contributed capital C) represents investments by the shareholders of the corporation D) represents capital earned by profitable operations 5. All of the following transactions increase shareholders' equity except: A) issuance of common shares B) profitable operations declaration of a cash dividend D) Issuance of convertible preferred shares 6. A profitable corporation would come out income summary by: A) debiting income summary and crediting share capital B) debiting income summary and crediting retained earnings C) crediting income summary and debiting retained earning D) crediting income summary and debiting share capital 7. Which of the following is a priority granted to preferred shareholders? A) voting for the corporate board of directors 3) receiving assets before creditors of the corporation liquidates C) receiving dividend before common shareholders D) receiving a guaranteed fixed dollar amount of dividends each year 3) The rest that determines the best of cash the borroweracach year, as an Interest payment to the bondholder is the A) stated interest rate B) effective interest Ci market trente D) explistest 505 words English United States 9) A $1,000 bond quoted at 10215 is selling for: A) $1,025.00 B) $1,000.25 C) $1,000.00 D) $1,250.00 10) Another name for the principal amount of a bond is: A) market value B) equivalent value C) maturity value D) effective value