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chapter12a - Chapter 12 1 Which of the following is not a...

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Chapter 12 1. Which of the following is not a major advantage of a corporation? A. Sepa rate legal exist ence. B. Cont inuo us life. C. Gov ernm ent regul ation . D. Tran sfera ble own ershi p right s. 2. A major disadvantage of a corporation is: limit ed liabil ity of stoc khol ders. addit ional taxe s.
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trans ferab le own ershi p right s. none of the abov 3. Which of the following statements is false ? Own ershi p of com mon stoc k give s the own er a votin g right . The stoc khol ders' equit y secti on begi ns with paid -in capit al.
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The auth oriza tion of capit al stoc k does not resul t in a form al acco untin g entry . The par valu e of a shar e of stoc k is equa l to its mark et valu 4. ABC Corporation issues 1,000 shares of $10 par value common stock at $12 per share. In recording the transaction, credits are made to:
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Com mon Stoc k $10, 000 and Paid -in Capi tal in Exce ss of State d Valu e $2,0 00. Com mon Stoc k $12, 000. Com mon Stoc k $10, 000 and Paid -in Capi tal in Exce ss of Par Valu e $2,0 00.
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