Limited liability of a corporation means that:
A) shareholders are not responsible for the decisions of management.
B) the corporation is not required to earn net income.
C) the corporation is not required to pay dividends.
D) a shareholders' potential loss is limited to their investment in the corporation.
Correct Answer:
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Q26: Since a corporation is a separate legal
Q27: The chairperson of the board of directors
Q28: The number of shares of stocks outstanding
Q29: Legal capital is the:
A)amount owed to owners.
B)amount
Q30: Paid-in capital is the amount of stockholders'
Q32: Stockholders' equity is divided into:
A)retained earnings and
Q33: Double taxation means that the:
A)corporation pays tax
Q34: A corporation is formed when the incorporators
Q35: The constitution for governing a corporation is
Q36: The group elected by the stockholders to
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