Question

The following list of statements about corporations are given below. 1. A corporation is an entity separate and distinct from its owners. 2. As a legal entity, a corporation has most of the rights and privileges of a person. 3. Most of the largest U.S. corporations are publicly held corporations. 4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. 5. The net income of a corporation is taxed as a separate entity. 6. Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder. 8. The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation. 9. The chief accounting officer of a corporation is the controller. 10. Corporations are subject to more state and federal regulations than partnerships or proprietorships.

Answer 1

1. True

2. True

3. False

4. True

5. True

6. True

7. True

8. True

9. True

10. True

Step-by-step explanation:

A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.

This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.

It is considered to be one of the most complicated and expensive type of organization. Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.

Some of the characteristics or features of a corporation are highlighted below;

1. True: A corporation is an entity separate and distinct from its owners.

2. True: As a legal entity, a corporation has most of the rights and privileges of a person.

3. False: Most of the largest U.S. corporations are publicly held corporations. Actually, most of them are privately held corporations.

4. True: Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.

5. True: The net income of a corporation is taxed as a separate entity.

6. True: Creditors have no legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.

7. True: The transfer of stock from one owner to another does not require the approval of either the corporation or other stockholders; it is entirely at the discretion of the stockholder.

8. True: The board of directors of a corporation manages the corporation for the stockholders, who legally own the corporation.

9. True: The chief accounting officer of a corporation is the controller.

10. True: Corporations are subject to more state and federal regulations than partnerships or proprietorships.