Question

Instructions on lov Identify each statement as true or false. If false, indicate how to correct the statement.

Answer 1

* ANSWERY 1) Τους 1x corporation is a type of corporate entity that is formed specifically to perform activities, such as running a business, which is Officially itreated as individuals. It is a legal entity that is reparate and distinct from its. owners. 2) TRUE Corporations enjoy most of the rights and responsibilities that individual porsers ie, they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes. 3) FALSE Most of the largest us Corporations are not privately held corporations. It includes publicity held corporations 4) TRUE Corporations may bref, own and sell property, borrow money, enter into legally binding contracts; and sue be sued, as it has a reparate distinct status, 5) FALSE The net income of a corporation is taned as a separate entity. Because corporation page taxes on its met income on its profits It files an annual income tax return with the IRS and is tared on net income at corporate rate DI

6) FALSE Il corporation is an incorporated entity designed to limit the liability ? of its owhers. Generally, owners are not personally liable for the deble of the corporation If the corporation does not pay its debts, then creditors have a legal claim on the assets of the corporation but not on owners personal assets 7 FALSE The transfer of stock from one person to another does not require the approval of corporation or other stock holdes. The person lan transfer his stock with mutual consideration. 3) TALSE A couporation is a separate legal entity and it has a legislature called "Board of directors" who are elected by the shareholders. Thes, they do not legally own the corporation but act on behalf of the corporation 9) TRUE of controller in accounting is the chief accounting officer and plays an important role in heading the entire accounting department. He ! is responsible for supervising all the accounting activities within the organization 10) FALSE Corporations are typically more closely monitored by governmental agencies. including federal, state and local. Complying with regulations can be Costly. They have many rules and regulatio to comply with So, corporations are not subject to fewer state and federal regulation then partnerulupe our proprietorships