Chapter 13 Practice Materials.docVIP

Chapter 13—Corporations: Organization, Capital Stock Transactions, and Dividends MULTIPLE CHOICE 1. Which of the following is not characteristic of a corporation? a. The financial loss that a stockholder may suffer from owning stock in a public company is limited. b. Cash dividends paid by a corporation are deductible（可减免的） as expenses by the corporation. c. A corporation can own property in its name. d. Corporations are required to file federal income tax?returns. ANS: B DIF: Easy OBJ: 13-01 NAT: AACSB Analytic | AICPA BB-Legal 2. Characteristics of a corporation include a. shareholders who are mutual agents b. direct management by the shareholders (owners) c. its inability to own property d. shareholders who have limited liability ANS: D DIF: Easy OBJ: 13-01 NAT: AACSB Analytic | AICPA BB-Legal 3. One of the main disadvantages of the corporate form is the a. professional management b. double taxation of dividends c. charter d. corporation must issue stock ANS: B DIF: Easy OBJ: 13-01 NAT: AACSB Analytic | AICPA BB-Industry 4. A disadvantage of the corporate form of business entity is a. mutual agency for stockholders b. unlimited liability for stockholders c. corporations are subject to more governmental regulations d. the ease of transfer of ownership ANS: C DIF: Easy OBJ: 13-01 NAT: AACSB Analytic | AICPA BB-Industry 5. Under the corporate form of business organization a. ownership rights are easily transferred. b. a stockholder is personally liable for the debts of the corporation. c. stockholders’ acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation. d. stockholders wishing to sell their corporation shares must get the approval of other stockholders. ANS: A DIF: Easy OBJ: 13-01 NAT: AACSB Analytic | AICPA BB-Legal 6. Those most responsible for the major policy decisions of a corporation are the a. management. b. Board（董事会） of directors. c. employe