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
d
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________ enables a manager to make decisions, give orders, and utilize resources. For example, the manager of a local pizzeria has the right to hire and fire drivers based on their punctuality, performance, and customer-service ratings.
A. Power B. A clan culture C. A hierarchy of power D. Touching E. Authority
The contractual process begins with a legal offer
Indicate whether the statement is true or false
On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the first interest payment using the effective interest method of amortization is:
A. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. B. Debit Interest Payable $13,500; credit Cash $13,500.00. C. Debit Bond Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00. D. Debit Bond Interest Expense $12,487.08; debit Premium on Bonds Payable $1,012.92; credit Cash $13,500.00. E. Debit Bond Interest Expense $12,487.08; debit Discount on Bonds Payable $1,012.92; credit Cash $13,500.00.
Which statement most accurately describes third party beneficiary rights?
a. A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary. b. If a promisee intended to make a gift to the beneficiary, the beneficiary may not enforce the contract. c. An intended third party beneficiary has no enforceable rights in a contract. d. Incidental beneficiaries have enforceable rights against both contracting parties.