Hana has prepared the following list of statements about corporations. Identify each statement as true or false. 1. A corporation is an entity separate and distinct from its owners.
Hana has prepared the following list of statements about corporations. Identify each statement as true or false. 1. A corporation is an entity separate and distinct from its owners.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 12MCQ
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Transcribed Image Text:Hana has prepared the following list of statements about corporations.
Identify each statement as true or false.
1.
A corporation is an entity separate and distinct from its owners.
2.
As a legal entity, a corporation may buy, own, and sell property: borrow money; and enter into legally
binding contracts.
3.
Shareholders have the right to vote, and to receive dividends on an annual basis.
4.
The profit of a corporation is not taxed as a separate entity.
5.
Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does
not pay its debts.
6.
Ina public company, the transfer of shares from one owner to another requires the approval of either the
corporation or other shareholders.
The board of directors of a corporation is elected by the shareholders.
7.
8.
Corporations are subject to fewer provincial and federal regulations than partnerships or proprietorships.
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