Answer True or False for Each statement

8. Statutes in several jurisdictions prohibit a corporation from commencing business until a certain minimum capital has been received in exchange for issuance of shares. 0 9. If the corporation issues par value stock, the par value of the shares is credited to the capital surplus account. () 10. Most state statutes impose no limitation upon the amount that may be allocated from stated capital to capital surplus. () 11. Watered shares are shares issued to persons who pay more than the law requires. () 12. The holder of a debt security is a debtor of the corporation. () 13. Certificated shares of stock, like debt securities, are generally freely transferable. () 14. Common examples of debt securities include notes, bonds, debentures, and stock share certificates. () 15. Common stock shares represent a residual ownership interest in a corporation. () 16. Closely-held corporations may issue only common stock shares. 0 17. As a general rule, once a corporation issues common or preferred shares it may never reacquire or redeem those shares. 0)