UMSV

ACC $207$

MID TERM EXAM No

Name Crisbel coor cia

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Which of the following statements regarding corporations is incorrect?

A$)$ Corporations dominate business activity in the United States.

B$)$ Most well$-$known corporations tend to be large multinational businesses.

C$)$ Corporations are businesses organized under state law and do not have an existence that is separate from their owners.

D$)$ Corporations are separate legal entities.

Regarding the issuance of stock, which of the following statements is incorrect?

A$)$ A company can sell its stock directly to stockholders, or it can use the services of the state's Securities and Exchange Commission.

B$)$ The issue price is the amount the corporation receives from issuing its stock.

C$)$ Large corporations cannot finance all their operations through borrowing, so they raise capital by issuing stock.

D$)$ Large corporations need huge quantities of money.

Which of the following is NOT a reason for which a company may purchase treasury stock?

A$)$ to support the company's stock price

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B$)$ to reward valued employees with stock

C$)$ to increase net assets by buying low and selling high

D$)$ to avoid a takeover by an outside party by increasing the number of outstanding shares that have voting rights

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