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The following list of statements about corporations are given below. 1. A corporation is an entity separate and distinct from its owners. 2. As a

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The following list of statements about corporations are given below. 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 publicly held corporations. 4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. 5. The net income of a corporation is taxed as a separate entity 6. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders: it is entirely at the discretion of the stockholder. 8. The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation. 9. The chief accounting officer of a corporation is the controller. 10. Corporations are subject to more state and federal regulations than partnerships or proprietorships- Andrea has studied the Information above and has come with more statements about corporations Andrea has studied the information above and has come with more statements about corporations. Identify whether each statement is true or false. 1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprictorship or a partnership. 2. Limited ilability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. 3. When a corporation is formed. organization costs are recorded as an asset. 4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, kerep the same percentage owmership when new shares of stock are issued, and share in assets upon liquidation. 5. The number of issued shares is always greater than or equal to the number of authoriaed shares. 6. A joumal entryis required for the authorization of capital stock. 7. Publdy held corporations usually issue stock directly to irnestors. 8. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existites stockholder. to another investor. 9. The market price of cammon stock is usually the same as its par value. 10. Retained earnines is the total amount of cash and other assets pald in to the corporation by stockhalders in eacharye for capital stock

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