Stockholders of a corporation have limited liability which is an advantage of a corporation. True False 2. A disadvantage of corporations is double taxation of corporate earnings. True False 3. Authorized shares represent the minimum number of shares that a corporation can issue True False 4. Limited liability, while an advantage, can have an adverse effect on a privately held business because a bank may want a personal guarantee from a shareholder on a loan. True False 5. When par value capital stock is issued, capital stock is credited with the par value of the shares issued, regardless of whether the issuance price is equal to par, more than par, or less than par. True False 6. Treasury stock is included the total amount of stock a corporation has issued. True False 7. When a corporation fails to pay a dividend one year on its common stock, it is said to be "in arrears." True False 8. An important pan of starting a business is raising capital and to raise capital a corporation can issue common and/or preferred stock. True False 10. The statement of cash flow attempts to show where the cash flow came from and where it went. True False 11. Non-cash expenses include depreciation and amortization. True False 12. In order to receive a dividend, a stockholder must have owned the stock as of the declaration date. True False 13. The date of declaration is the date a dividend becomes a liability True False 14. Cash flow from financing activities includes loans, stock issuances and issuance of bonds. True False 15. A corporation must declare a dividend annually. True False 16. In order to pay a dividend, a corporation's board of directors must have declared one, that is, the date of declaration True False