1 2

Andrea has prepared the follrxving list of statements e bcut corporations. Identify each statement as true or false 10 Corporation management is both an advantage and a disadvantage of a corporation compered to e proprietorship or e Limited liability of stmkWzIders. government regulations. end additional taxes ere the major disadvantages of corporation. When e corporation is formed. organization costs are recorded as an asset. ach share of common stmk gives the stc.ckhzlder cwnership rights to vote at stockholder meetings, share in corporate earnings, keep same percentage ownership wwzn new sheres Ofstcck ere issued. shere in assets u;uyn liquidation. The number of issued shares is e Ivays greeter than or egual to the number of authorized shares Ajourn&l entry is required for the authorization of capital stc& Publicly held corporations usually issue stock directly to investors. The trading of cepitel stnk on e securities exchange involves the transfer of already issued shares from en existing stockholder to investor The market price of common stcck is usually the seme as its per value Retained earnings is the total erro_lnt of cash and other assets paid in to the corporation by stkhdders in exch&nge for capitel stock