Question

 QS 11-1 Characteristics of corporations LO C

 Identify which of the following statements are true for the corporate form of organization.

•  Shareholders are not personally liable for corporate acts.

•  The sale of shares from one stockholder to another does not Impact operations. An exception is when it changes the makeup of directors. DIt has many of the same nights as an individual

•  it does not end with the death of an owner.

•  Corporations are often subject to fewer regulations than partnerships.

•  Stockholders are expected to hire and fire key executives.

•  The president and vice presidents choose the board of directors.

 Which of the following statements are true regarding dividends?

•  A stock dividend commonly Indicates management's confidence that the company is doing well.

•  A large stock dividend is a distribution of more than 25% of previously outstanding shares.

•  All stock dividends (large and small) are recorded at the market value of the stock price as of date of declaration.

•  A stock dividend Increases the number of outstanding shares.

Answer 1

Please find the answer to your questions as below:

1. Identify which of the following statements are true for the corporate form of Organization:

1.1 The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors.

1.2 It does not end with the death of an owner.

2. Which of the following statements are true regarding Dividends:

2.1 A Stock dividend commonly indicates management's confidence that the company is doing well

2.2 A Large stock dividend is the distribution of more than 25% previously outstanding shares.

2.3 A Stock dividend increases the number of outstanding shares.