Knowledge Check 01 Which of the following are reasons that corporations can raise large amounts of money? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Shares of stock can be purchased in small amounts ? Ownership interests are nontransferable 2 Stockholders are not liable for the corporation's debts ? Stockholders have unlimited liability Knowledge Check 01 Which of the following are advantages of equity financing? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Equity does not have to be repaid. 2 Dividends on stock are tax deductible. It does not change stockholder control. 7 Dividends are optional. Knowledge Check 01 Which of the following statements about dividends are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Dividends reduce Retained Earnings 2 Stockholders are legally entitled to dividends. ? A corporation's board of directors chooses whether or not to declare dividends. ? A corporation is legally obligated to distribute dividends once they are declared