assesment 6.docx - Which of the following is not an...

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Which of the following is not an advantage of the corporate form of organization?Select one:a. Limited liability of stockholders.b. Double taxation. Correct.c. Easy transfer of ownership.d. Continuous existence of the entity.FeedbackThe correct answer is: Double taxation.Question 2CorrectMark 10.00 out of 10.00Flag questionQuestion textAn arbitrary amount assigned by the board of directors to each share of a given class of no-par stock is:Select one:a. Liquidation value.b. Redemption value.c. Quasi-par value.d. Stated value. Correct. Stated value is an arbitrary amount assigned by the board of directors toeach share of capital stock without a par value.FeedbackThe correct answer is: Stated value.
Question 3CorrectMark 10.00 out of 10.00Flag questionQuestion textPreferred stock that has dividends in arrears is:Select one:a. Noncumulative and convertible preferred stock.b. Noncumulative and callable preferred stock.c. Cumulative preferred stock. Correct. Dividends in arrears are cumulative unpaid dividends. Only cumulative preferred stock has dividends in arrears.

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