Hana has prepared the following list of statements about corporations: 

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. In a public company, the transfer of shares from one owner to another requires the approval of either the corporation or other shareholders. 

7. The board of directors of a corporation is elected by the shareholders. 

8. Corporations are subject to fewer provincial and federal regulations than partnerships or proprietorships. 

Instructions 

Identify each statement as true or false. If false, indicate how to correct the statement.