Answer the following statement(s) true (T) or false (F)
1. The corporate existence typically begins when the articles of incorporation are signed.
2. A formal preincorporation agreement may be desirable when it is necessary to bind participants to make future financial contributions that may be essential to the business venture.
3. Upon incorporation, the corporation becomes liable for any preincorporation agreements entered into by its promoters.
4. Stock subscriptions may be used at any time during the life of a corporation to add new shareholders to the corporation.
5. When the corporation’s articles of incorporation authorize only one class of stock, that class is typically referred to as preferred stock.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Which one of the following is the last step in the accounting cycle?
a. Journalizing business transactions b. Recording and posting adjustments c. Closing the accounts d. Preparing financial statements
Creating and updating the marketing plan is the responsibility of ________
A) the portfolio manager B) top management C) the marketing department D) the finance department E) the public relations agency
The category of securities with the highest historical risk premium is
A) small company stocks. B) small company corporate bonds. C) large company stocks. D) government bonds.
In general, accounting records accumulate cost information according to its behavior (i.e., variable and fixed).
Answer the following statement true (T) or false (F)