MULTIPLE CHOICE QUESTIONS
37.Which one of the following is a privately held corporation?
38.The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is
a.the sole proprietorship.
39.Under the corporate form of business organization
a.a stockholder is personally liable for the debts of the corporation.
b.stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.
c.the corporation's life is stipulated in its charter.
d.stockholders wishing to sell their corporation shares must get the approval of other stockholders.
40.Stockholders of a corporation directly elect
a.the president of the corporation.
b.the board of directors.
c.the treasurer of the corporation.
d.all of the employees of the corporation.
41.The chief accounting officer in a company is known as the
42.A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a
a.corporation is organized for the purpose of making a profit.
b.corporation is subject to more federal and state government regulations.
c.corporation is an accounting economic entity.
d.corporation’s temporary accounts are closed at the end of the accounting period.
43.Which one of the following would not be considered an advantage of the corporate form of organization?
a.Limited liability of owners
b.Separate legal existence
44.The concept of an “artificial being” refers to which form of business organization?
45.The two ways that a corporation can be classified by purpose are
a.general and limited.
b.profit and not-for-profit.
c.state and federal.
d.publicly held and privately held.
46.The two ways that a corporation can be classified by ownership are
a.publicly held and privately held.
b.stock and non-stock.
c.inside and outside.
d.majority and minority.