Answer the following statements true (T) or false (F)
1) Double taxation occurs when corporations make dividend payments to stockholders.
2) Higher start-up costs and expensive government regulations are disadvantages of corporations.
3) Both common and preferred stock carry the same degree of investment risk for the stockholder.
4) Preferred stockholders receive a dividend preference over common stockholders.
5) Paid-in capital is externally generated capital and results from transactions with outsiders.
1) TRUE
2) TRUE
3) FALSE - Preferred stockholders take less investment risk than common stockholders.
4) TRUE
5) TRUE
You might also like to view...
A limitation of using industry norms in financial performance evaluation is that some companies in the same industry may not be strictly comparable
Indicate whether the statement is true or false
The parol evidence rule holds that when persons have signed a contract as their final and complete expression of intention (integrated contracts), then neither party may introduce in court any evidence of prior or contemporaneous oral or written material that adds to or modifies that written contract
Indicate whether the statement is true or false
In an object oriented database model, data is represented as a set of related tables or relations
Indicate whether the statement is true or false
Sensitive information can be included in the stakeholder register as very few people in the organization have access to it
a. True b. False Indicate whether the statement is true or false