Indicate whether each of the following statements is true or false.
______ 1. Similar to partners in a partnership, stockholders of a corporation have unlimited
liability.
______ 2. It is relatively easy for a corporation to obtain capital through the issuance of
stock.
______ 3. The separation of ownership and management is an advantage of the corporate
form of business.
______ 4. The journal entry to record the authorization of capital stock includes a credit
to the appropriate capital stock account.
______ 5. All states require a par value per share for capital stock.