Andrea has prepared the following list of statements about corporations.
- A corporation is an entity separate and distinct from its owners.
- As a legal entity, a corporation has most of the rights and privileges of a person.
- Most of the largest U.S. corporations are privately held corporations.
- Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.
- The net income of a corporation is not taxed as a separate entity.
- Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.
- The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders.
- The board of directors of a corporation legally owns the corporation.
- The chief accounting officer of a corporation is the controller.
- Corporations are subject to fewer state and federal regulations than partnerships or proprietorships.
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Andrea has prepared the following list of statements about corporations. A corporation is an entity separate and distinct from its owners.
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Identify each statement as true or false. If false, indicate how to correct the statement.
Identify characteristics of a corporation.
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