Of the following statements, which are true for the corporate form oforganization?1. Ownership rights cannot be easily transferred.2. Owners have unlimited liability for corporate debts.3. Capital is more easily accumulated than with most other forms oforganization.4. Corporate income that is distributed to shareholders is usually taxedtwice.5. It is a separate legal entity.6. It has a limited life.7. Owners are not agents of the corporation.

The corporate form of organization is a legal framework that enables the formation of an entity that…

Answered: Of the following statements, which are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is true of a "Subchapter S Corporation"? The corporation is subject to double taxation. O The company is not really a corporation so it is not a separate entity from the stockholders and does not file a tax return. The owners' personal assets are protected from customers and creditors. O Tax on the business income of the company is paid only by the business. O Owners of the equity of this business are called "debtors".
An S corporation avoids taxes at a. none of the choices. b. the corporate level. c. the market level. d. the shareholder level
One of the following characteristics of a corporation is deemed a disadvantage. Which is it? a. Ownership transfer b. Double Taxation c. Easy Ability to Raise Capital d. Limited Liability Protection e. None of the above.
If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False The owners of a corporation are personally responsible for the debts of the corporation. True or False
What is a disadvantage of the corporate form? Profit O Revenue Owners have very little influence on business decisions O Limited liability
Which of the following statements is false concerning forms of businessorganization? a. A corporation has tax advantages over the other forms of businessorganization.b. It is easier for a corporation to raise large sums of money than it isfor a sole proprietorship or partnership.C. A sole proprietorship is an easy type of business to form.d. Owners Of sole proprietorships and partnerships have personalliability for the debts of the business while owners of corporationshave limited legal liability.
The disadvantages are: (Select all the choices that apply.) A. Income to a corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. B. The life of the business usually ends with the death of any of the owners. C. The corporation is more complicated and more expensive to set up than other business entities. D. Corporate liabilities can be passed on to the shareholders, thus making stock ownership primarily the realm of wealthy investors.
Which of the following is true about this statement: "In a sole proprietorship, the owner's personal assets are at risk if the business is not successful." Is this true? a) No, personal assets are protected by sole proprietorship laws. b) Yes, there is no protection for personal assets with sole proprietorships. c) No, personal assets are only at risk with corporations. d) Yes, this is true for all forms of business.
Which of the following statements are true regarding corporations? Note: 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. Any boxes left with a question mark will be automatically graded as incorrect. ? Ownership rights cannot be easily transferred. ? Owners have unlimited liability for corporate debts. ? Capital is more easily accumulated than with most other forms of organization. ? Corporate income that is distributed to shareholders is usually taxed twice. ? It is a separate legal entity. ? It has a limited life. ? Owners are not agents of the corporation. ..........
Which of the following is a disadvantage of the corporate form of organization? difficulty in raising capital unlimited liability of the owners finite life of the organization the tax treatment of dividends
Pass through. If the corporation is structured as an S corporation, profits and losses are well-versed to the shareholders, in order that the corporation doesn't pay financial gain taxes. Can you help me understand what that is, with details?
Why would a creditor of a corporation consider suing shareholders of that corporation for a debt owed by the corporation to the creditor?A. The corporation has gone out of business.B. The debt is for a lot of money.C. The shareholder is usually liable for the corporation’s debts.D. The creditor had a contract with the corporation.

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