DeAnza Accounting Chapter 13 quiz - under the corporate form of business organizationin Accounting by Marlboro30
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One of the main disadvantages of the corporate form is the
a. corporation must issue stock.
b. charter. c. double taxation of dividends.
d. professional management. 2. Correct answer: b Your answer: A disadvantage of the corporate form of business entity is a. unlimited liability for stockholders.
b. corporations are subject to more governmental regulations.
c. the ease of transfer of ownership.
d. mutual agency for stockholders.
3. Correct answer: d Your answer: Under the corporate form of business organization a. stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.
b. a stockholder is personally liable for the debts of the corporation. c. stockholders wishing to sell their corporation shares must get the approval of other stockholders.
d. ownership rights are easily transferred. 4. Correct answer: c Your answer: Which one of the following would not be considered an advantage of the corporate form of organization? a. Limited liability of stockholders
b. Continuous life
c. Government regulation
d. Separate legal existence 5. Correct answer: b Your answer: The term deficit is used to refer to a debit balance in which of the following accounts of a corporation? a. Treasury Stock
b. Retained Earnings
c. Common Stock d. Organizat ...
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