Question

Stockholders of a corporation directly elect

a the president of the corporation.

b the board of directors.

c the treasurer of the corporation.

d all of the employees of the corporation.

Which one of the following would not be considered an advantage of the corporate form of organization?

a Limited liability of owners

b Separate legal existence

c Continuous life

d Government regulation

Mary Thresh has invested $200,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Thresh stand to lose?

a. Up to her total investment of $200,000.

b $0.

c The $200,000 plus any personal assets the creditors demand.

d $100,000.

What is ordinarily the first step in the formation of a corporation?

a Development of by-laws for the corporation

b Issuance of the corporate charter

c Application for incorporation to the appropriate Secretary of State

d Registration with the SEC

Dividends are declared out of

a Capital Stock.

b Paid-in Capital in Excess of Par.

c Retained Earnings.

d Treasury Stock.

Answer 1

Answer:

1. The correct answer for the given statement is Option b. The board of directors.

Stockholders of a corporation directly elect the board of directors.

2. The advantages of corporations are limited liability, seperate legal existence and perpetual existence.

Government regulation is not an advantage.

3. One of the basic trademark old organization is constrained obligation of stockholder's. The risk of investors is constrained to the sum that every ha put resources into the company. The individual resources of investors are not accessible to leasers or loan specialists looking for installment of sums possessed by partnership. leasers can guarantee upto the measure of corporate resources accessible to partnership.

Up to her total investment of $200,000.

4. The correct answer for the given statement is Option C. Application for incorporation to the appropriate Secretary of State

Application for incorporation to the appropriate Secretary of State

5. The retained earnings is an account of equity that shows the net balance of company's earnings

Dividends are declared out of retained earnings.