True or False?-Corporations 1 Shareholders' equity for a corporation consists of contributedcapital and retained earnings. 1 2 - The owner of a corporation is called a director. 3 - The payment of business profits to the owners of a corporate business'is known as drawings. I 4 A dividend is a distribution of retained earnings. I 5 6 7 8 The shareholders provide all of the financing for a corporation +One of the advantages of investing in preferred shares is that you will always be paidyour dividend. I _ -The members of the Board of Directors are elected by the owners of the corporation that is, by the common and preferred shareholders. 1 -Both-interest to the creditors and dividends to the preferred shareholders must be paid-eachyear. 1 A corporation is discontinued if the only shareholder dies. 1 The market price of common shares is shown on the balance sheet. _.If a corporation goes bankrupt, the common shareholders are requiredto pay the creditors from their own resources. 1 9 10 11 12 13 In a year of huge profits, the preferred shareholders can expect higher than normal dividends. 1 The balance in retained earnings represents the cumulative earnings of a company since its inception, less the total dividends paid out. I The main goal of a responsible financial manager is high profits. 14 1