Question

Indicate whether each of the following statements is true or false. 1.The corporation is an entity separate and distinct from its owners. 2.The liability of stockholders is normally limited to their investment in the corporation. 3.The relative lack of government regulation is an advantage of the corporate form of business. 4.There is no journal entry to record the authorization of capital stock. 5.No-par value stock is quite rare today.

Answer 1

Answer:

1. T 2. F 3. F 4. F 5. T

Explanation:

A cooperation is distinct to its owners because the founded the corporation but separate with how it develops. Stockholders are not just limited to their investments. Lack of Goverment Regulation is a terrible thing, it causes Smaller Businesses to shut down while one larger business becomes the almighty coperation. There is always a journal entry to record capital stocks. No-Par Value stocks are rare.