Question : 51. Most publicly traded firms operate as corporations. Which of the : 1245788

51. Most publicly traded firms operate as corporations. Which of the following is/are not true? A.  The corporate form provides the owner unlimited liability.B. The corporate form allows the firm to raise funds by issuing shares to investors in varying amounts. C. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm.D. The corporation has legal status separate from its owners. E. all of the above

52. Most publicly traded firms operate as corporations. Which of the following is/are not true? A. If the corporation becomes insolvent, creditors can claim only the assets of the corporate entity and cannot claim the assets of the individual owners.B. To settle debts of general partnerships, creditors have a claim on the owners’ business and personal assets. C. To settle debts of sole proprietorships, creditors have a claim on the owners’ business and personal assets. .D. In recent years, many partnerships and sole proprietorships have become limited liability companies (LLCs), or limited liability partnerships (LLPs), to limit their owners’ personal liability for business debts and other obligations. E. none of the above

53. Most publicly traded firms operate as corporations. Which of the following is/are not true? A. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm. B. The transfer of ownership interests is a transaction between shareholders and does not involve the firm whose shares change hands. C. Investors make capital contributions under a contract between themselves and the corporation. D. The corporation has legal status separate from its owners. E. none of the above

54. Most publicly traded firms operate as corporations. Which of the following is/are not true? A. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm. B. The transfer of ownership interests is a transaction between the shareholder and the firm whose shares change hands. C. Investors make capital contributions under a contract between themselves and the corporation. D. The corporation has legal status separate from its owners. E. none of the above

55. Various laws and contracts govern the rights and obligations of a shareholder.  Which of the following is/are not true? A. The corporation laws of the jurisdiction in which incorporation takes place govern the rights and obligations of a shareholder. B. The articles of incorporation or the corporate charter sets out the agreement between the firm and the jurisdiction in which the business incorporates. C. The board of directors adopts bylaws, which are the rules and regulations governing the internal affairs of the corporation. D. The jurisdiction grants to the firm the privileges of operating as a corporation for certain stated purposes and of obtaining its capital through the issue of shares of stock. E. none of the above

56. Various laws and contracts govern the rights and obligations of a shareholder.  Which of the following is/are not true? A. The corporation laws of the jurisdiction in which incorporation takes place govern the rights and obligations of a shareholder. B. The articles of incorporation or the corporate charter sets out the agreement between the firm and the jurisdiction in which the business incorporates. C. The board of directors adopts bylaws, which are the rules and regulations governing the internal affairs of the corporation. D. The U.S. Government grants to the firm the privileges of operating as a corporation for certain stated purposes and of obtaining its capital through the issue of shares of stock. E. none of the above

57. Various laws and contracts govern the rights and obligations of a shareholder.  Which of the following istrue? A. Each type of capital stock has its own provisions on voting matters, only. B. Each type of capital stock has its own provisions on sharing in earnings matters, only.  C. Each type of capital stock has its own provisions on distributing assets generated by earnings matters, only.  D. Each type of capital stock has its own provisions on sharing in assets in case of dissolution of the firm.matters, only.  E. Each type of capital stock has its own provisions on such matters as voting, sharing in earnings, distributing assets generated by earnings, and sharing in assets in case of dissolution of the firm. .

58. Which of the following is not true? A. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders.  B. Preferred shares carry special rights.  C. The senior status and special rights may induce certain investors to purchase preferred shares of a firm, even though they would be unwilling to purchase common shares of the same firm.  D. The senior status and special rights increase the risks of preferred shareholders relative to common shareholders. E. Preferred shares vary with respect to the rights and obligations of the issuing firm and of the investor in the preferred shares.

59. Which of the following is not true? A. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders.  B. Preferred shares carry special rights.  C. The senior status and special rights may induce certain investors to purchase preferred shares of a firm, even though they would be unwilling to purchase common shares of the same firm.  D. The senior status and special rights decrease the risks of preferred shareholders relative to common shareholders. E. Jurisdictional laws dictate the rights and obligations of the issuing firm and of the investor in the preferred shares.

60. Which of the following is/are not true? A. Callable preferred shares provide the issuer with the right to repurchase preferred shares at a specified price, B. If financing becomes available at a cost lower than the rate fixed for the preferred shares, the issuing firm can reduce its financing costs by issuing new securities and then exercising its option to reacquire the outstanding callable preferred shares at a fixed price. C. The call option is valuable to the issuing firm but makes the shares less attractive to potential owners of the shares.D. Other things equal, a firm will receive a smaller amount from issuing callable preferred shares than from issuing noncallable preferred  shares. E. none of the above