D Question 73 2 pts If a family farm corporation earns a profit, the board of di

Question

D Question 73 2 pts If a family farm corporation earns a profit, the board of directors must therefore declare a dividend on the corporate stock. O True O False Question 74 2 pts One advantage of incorporating is that shareholders or officers can never become personally liable for corporate obligations. O True O False Question 75 2 pts If a minority shareholder in a family farm corporation does not like how the business is being managed, generally the minority shareholder can require the corporation to buy back her stock shares. True O False

Explanation / Answer

1)The statement is False .

The board of directors declare a dividend after the approval by shareholders in a general meeting.However it is not always necessary that in case corporaion earns profit the dividend should be declaredthe corproation may retain the profit

74)The statement is True.

The liability of shareholders of a corporation is limited to the amount of capital contributed by them.thus they cannot be held liable for any obligations of corporation.

75)The statement is False.

A minority shareholder cannot force a corporation to buyback shares in case management is not properly managed or taken.

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