Identify if the statement is True or False When a corporation pays a dividend, t

Question

Identify if the statement is True or False When a corporation pays a dividend, the dividends are only taxed once: at the shareholder level IChoose l Creditors of a corporation do not have a legal claim on the personal assets of the stockholders if the corporation goes bankrupt. [Choose ] If a stockholder wishes to sell their stock in a corporation, they must obtain corporate approval to do so. [Choose ] An individual person has many more rights Choosel than a corporation does. It is very difficult for corporations to obtain cash through the sale of stock. [Choose ] The death of a stockholder has no affect on the daily operations of the corporation. A drawback of being a corporation is thatI Choose they are required to follow Federal, State and SEC laws. Stockholders of a corporation do not have a IChoose direct say in how the corporation is managed Stockholders elect the officers of the corporation who in turn, select the board of directors IChoose l It is very difficult for invidudal stockholders to sell their stock if they wish to do so [Choose ]

Explanation / Answer

When a coproration pays dividend , the dividends No. are taxed only once, at the shareholders level Creditors of a corporation do not have a legal claim Yes on the personal assets of the stockholders if the corporation goes bankrupt. If stokholders wish to sell his stock in a corporation, No they must obtain corporate approval to do so. An individual has many more rights than a corporation does. No It is very difficult for corporations to obtain cash No through sale of stock The death of a stockholder has no effect on the daily operation Yes of the corporation A drawback of being a corporation is that they have to follow Yes Federal, State and SEC laws Stockholders of corporation do not have a direct say in how Yes the corporation is managed. Stockholders elect the officers of the corporation who in turn , No select the board of directors. It is very difficult for individual stockholders to sell their stock No. if they wish to do so.

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