Knowledge Check Indicate if each statement is true or false. 1. A corporation's stockholders have unlimited liability. 2. Two ways to classify corporations are by purpose and by ownership. 3. The relatively low amount of income taxes paid by corporations is an advantage of the corporate form of business. 4. Privately held corporations typically have only one shareholder. 5. State securities laws govern the sale of capital stock to the general public. Attempts: 0 of 1 used True False Submit