1 Which of the following is not a distinguishing

characteristic #733
1. Which of the following is not a distinguishing characteristic of the corporation as a form of
business?a. Separate legal entityb. Unlimited liability of ownersc. Ability to raise capitald.
Double taxation2. The income of the corporation is taxed:a. at the personal level when
dividends are paid.b. at the corporate level.c. both a and b.d. neither a nor b.3. The number of
shares that a company can issue according to its corporate charter is referred to as:a. issued
shares.b. authorized shares.c. outstanding shares.d. none of the above.4. Which of the
following rights are received by investors when they purchase common stock?a. The right to
participate proportionally in dividendsb. The right to votec. The right of preemptiond. All of the
above5. What is the arbitrary value that determines an entity's legal capital?a. Issue valueb.
Face valuec. Par valued. Stated value6. A company issues 200 shares of $2 par value common
stock for $10 per share. What amount will be credited to the Common Stock account when
recording this transaction?a. $400b. $2,000c. $1,600d. None of the above7. A company issues
200 shares of $2 par value common stock for $10 per share. What amount will be credited to
the Additional Paid-In Capital account when recording this transaction?a. $400b. $1,600c.
$2,000d. None of the above8. A distribution of profits to owners by a corporation is known as:a.
a gift.b. a settlement.c. a payment.d. a dividend.9. Which of the following statements concerning
dividends is true?a. The board of directors decides when to distribute dividendsb. A corporation
does not have to pay a dividend every yearc. Dividends can be paid in methods other than
cashd. All of the above are trueView Solution:
1 Which of the following is not a distinguishing characteristic

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