Chapter 11 Homework - Nicholas Kuras Q:1,3,4,7,8,10,11,12,14,16,18,19,21,22,24 | P:2A 7A 4B 8B 1 a The company is separate from the owner It acts

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Nicholas Kuras Q:1,3,4,7,8,10,11,12,14,16,18,19,21,22,24 | P:2A, 7A, 4B, 8B 1) a) The company is separate from the owner. It acts under itself, and not under someone else. The owner does not have to worry about liabilities incurred through the company. b) Stockholders and owners of the company are not responsible for liabilities that the company incurs c) Stockholders may sell their share of the company to someone else, at their will 3) No. A company can incorporate in any state that they wish. Most choose to do so in Delaware due to favorable laws. 4) Stockholders may vote for board of directors. They may also share in dividends. 7) Authorized 100,000; Issued 66,000; Outstanding 34,000 8) Depends on the market value of the shares of stock 10) a) No effect b) No effect c) Goes down d) Goes down 11) a) Preferred stock gets a preference when it comes to dividends and assets. They also may not have voting rights b) The stockholder would be paid dividends for the current year and for any other unpaid years before common stockholders receive dividends c) The amount, current year dividends, and total preferred dividends 12) Debit to retained earnings: net loss; Credit to retained earnings: net gain
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This note was uploaded on 08/30/2010 for the course BA 2340 taught by Professor Staff during the Fall '08 term at Michigan Technological University.

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Chapter 11 Homework - Nicholas Kuras Q:1,3,4,7,8,10,11,12,14,16,18,19,21,22,24 | P:2A 7A 4B 8B 1 a The company is separate from the owner It acts

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