Which of the following statements is not correct? Select one a. Ownership of common shares gives the owner a voting right, O b. If a company's shares are sold by one shareholder to another, this transaction must be recorded by the company, and Share Capital would increase O c The authorization of share capital does not result in a transaction that is recorded by the company. Od Legal capital cannot be distributed to shareholders Notes Which one of the following would normally be considered a disadvantage of the corporate form of organization? Select one O a Limited liability of shareholders O b. Separate legal existence O . Continuous life Od Government regulation Not The following information is taken from the statement of financial position and related disclosures of Blue Bird Corporation: Total contributed capital Outstanding shares: $1.50 preferred shares, no-par-value, callable at $25.50, issued at $25 per share Common shares, no-par-value Preferred dividends in arrears Total shareholders' equity $5,400,000 40,000 shares 100,000 shares two years $4,700,000 Which of the following statements is not correct? Select one O a. The preferred dividends in arrears amount to $120,000 and should appear as a liability in the corporation's statement of financial position b. The average issue price per common share is $44 O c. The shareholders' equity section of the statement of financial position should show a deficit of $700,000 O d. The corporation has not paid any dividends on common shares during the past two years Notes