In: Finance
1) False.
Divided paid to stockholders is not a tax deductible expense. Divided is paid out of the profit remaining after all expenses (including tax) i.e. it is paid out of Profit After Tax (PAT).
2) True.
Common stock in a corporation can be privately owned by Private investors or publicly owned by public investors. Company can issue shares through preferential allotment to some private investors. It can issue shares to public at large through IPO (Initial Public Offer) or FPO (Further Public Offer).
3) False
The authorised shares are the maximum number of shares which a company can issue. Therefore the number of outstanding shares of common stock is always less than or equal to the number of authorized shares of the common stock.
4) False
Small corporations are owned by Private or less number of people therefore these are privately or closely owned.
Large corporatios are publicly owned.