Test 4-Fall, 20176 Help Save &Exit; Submit Saved Of the following statements, wh

Question

Test 4-Fall, 20176 Help Save &Exit; Submit Saved Of the following statements, which are true for the corporate form of organization? (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 he question mark to empty the box for a wrong answer.) ners ship is usually transferred readily 01:56:06 ?Stockholders do not have the power to bind the corporation to contracts ?It has a continuous life ? Transfer of ownership rights among owners generally does not impact equity. Compared to other forms of organization- capital (financing) is more difficult to accumulate ? Generally there is no double taxation on corporate income that is distributed to owners ? t is not a separate legal entity from its owners Activate Windows to Settings to activate Windows Graw Hill Prev 14 of 26 Next>

Explanation / Answer

The statements which are true are as follows :

Explanation : As a company or a corporation have a seperate legal status thanits owner it become easy for owners to dispose off their such ownership rights through various medium like Stock exchange

Explanation : Stockholder are not agents of the company & to "lack of mutual agency " they donot have the power to bind the corporation to contracts

Explanation : As corporation enjoys the seperate legal status from its owners it is not depends on life span of its owners thus have a continues indefinite life.

Explanation : Except when transfer of ownership rights results in changes in management like change in composition of Board of directors, it does not impact equity in generally

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