Homework SourseWhich of the following statements about a corporation is not
Which of the following statements about a corporation is not correct?
A corporation is a separate legal entity.
A corporation has easy transferability of ownership.
A corporation may have the ability to raise large amounts of capital.
A corporation\'s owners have unlimited liability.
Which of the following is an advantage of debt financing?
It does not have to be repaid.
Interest is discretionary.
Interest is tax deductible.
It reduces stockholder control.
When a stockholder sells its shares to another person for more than its original cost, the corporation:
does not make a journal entry.
records a gain on the sale of stock.
records a credit to Common Stock.
records a debit to Treasury Stock.
The number of shares issued represents the number of shares:
sold.
repurchased.
the company is allowed to sell.
sold less repurchased.
Which of the following is not a reason a company would repurchase stock?
To reduce the number of outstanding shares.
To give the impression that the stock is worth buying.
To have shares of stock to issue when stock options are exercised.
To increase the total stockholders\' equity balance and improve the ROE.
