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The creation of a separate legal being implies the business

  The creation of a separate legal being implies the business

a. has an existence independent of its owners

b. is partially owned by the government

c. must abide by federal law

d. will be regulated by the government

e. does not have to abide by state law

47.              Which of the following is not found in the corporate form of business?

a. stocks

b. bonds

c. state charter

d. dividends

e. unlimited liability

48.              The portion of corporation profits received by shareholders is termed

a. stocks

b. bonds

c. dividends

d. interest

e. principal

49.              Common stock in a corporation represents a(n)

a. loan to the business

b. ownership interest in the business

c. investment in the business with a guaranteed interest return

d. investment in the business with a guaranteed profit return

e. gift to the corporation

50.              One difference in the creation of a corporation as opposed to other forms of business is
                            that a corporation

a. requires the receipt of a state charter

b. must receive a federal charter

c. must have at least 10 employees

d. must operate in at least two states

e. must produce at least two products

51.              A dividend is

a. a payment to the corporation’s bondholders

b. the same as the profit of the corporation

c. a payment of a portion of the corporation’s profits to the shareholders

d. guaranteed if one has common stock

e. the payment to each partner in a partnership form of business

52.              Corporate bondholders

a. can vote on important issues at shareholder meetings

b. are part owners of the business

c. compose the board of directors

d. receive dividends from the corporation

e. are general creditors of the corporation

53.              Corporate bonds differ from corporate stock in that

a. only bondholders vote on the board of directors

b. only bondholders can sit on the board of directors

c. bonds carry a stated rate of interest

d. bonds are issued as common and preferred

e. bondholders are considered the owners of the business

54.              Compared to stockholders, bondholders

a. face greater risk

b. face the same risk

c. face lower risk

d. always receive a higher return on their investment

e. always receive a lower return on their investment

55.              The holder of a corporate bond

a. receives a guaranteed dividend payment each year

b. can vote at shareholder meetings

c. can vote only for the board of directors at shareholder meetings

d. is a part owner of the business

e. receives, at most, a stated interest payment on the investment

Dec 11 2019 View more View Less

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