Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

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Multiple Choice

Which of the following is NOT true of a corporation?

A corporation has unlimited liability for its owners.

Ownership in a corporation is typically represented by shares of stock.

A corporation can continue to exist even if ownership changes.

A corporation is a separate legal entity from its owners.

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Verified step by step guidance

Understand the concept of a corporation: A corporation is a legal entity that is separate from its owners, meaning it has its own rights and responsibilities under the law.

Review the concept of liability: In a corporation, the owners (shareholders) have limited liability, meaning they are not personally responsible for the corporation's debts or obligations beyond their investment in shares.

Examine ownership representation: Ownership in a corporation is typically represented by shares of stock, which can be bought, sold, or transferred without affecting the corporation's existence.

Understand the continuity of a corporation: A corporation can continue to exist even if ownership changes, as it is independent of its shareholders.

Identify the incorrect statement: The statement 'A corporation has unlimited liability for its owners' is NOT true because corporations provide limited liability protection to their owners.