Question

Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
  

• Shareholders are not personally liable for corporate acts.unchecked
• Directors oversee its business affairs.unchecked
• The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors.unchecked
• Stockholders do not have the power to bind the corporation to contracts.checked
• Owners are personally liable for corporate debts.unchecked
• Corporations are often subject to fewer regulations than partnerships.checked
• The president and vice presidents choose the board of directors.

Answer 1

• Shareholders are not personally liable for corporate acts. True
• Directors oversee its business affairs. True
• The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. True
• Stockholders do not have the power to bind the corporation to contracts. True
• Owners are personally liable for corporate debts. False, corporates have seperate legal entity & they are themselves liable.
• Corporations are often subject to fewer regulations than partnerships. False, Generally there are more regulations on corporates.
• The president and vice presidents choose the board of directors. False, they are elected by voting of shareholders.

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