Business 101
Although a corporation is owned by a group of people, does it act as if it were a single
person? - ANS-Yes
Is a corporation allowed to make contracts but not borrow money? - ANS-No
Is it possible for a corporation to be used in its own name? - ANS-Yes
Can a person who buys only one share of stock become an owner of a corporation? -
ANS-Yes
Is a dividend the amount of money a person pays to buy a share of stock - ANS-No
Could a stockholder be responsible for all the debts of a corporation? - ANS-No
Can creditors collect from stockholders if the corporation fails? - ANS-No
Are the members of the board of directors elected by stockholders? - ANS-Yes
Can a corporation make important changes in te purpose of its business without
changing its charter? - ANS-No
When shares are transferred, must the transfer of ownership be indicated in the records
of the corporation? - ANS-Yes
Is the annual sales tax rate for corporations based on profits? - ANS-Yes
Is it possible for some corporations to avoid double taxation? - ANS-Yes
Does a joint venture occur when two major contractors agree to connect two cities by
building a tunnel under a river? - ANS-Yes
Do virtual corporations tend to be temporary relationships? - ANS-Yes
Does a cooperative provide members with both cost and profit advantages that they
would not have individually? - ANS-Yes
Although a corporation is owned by a group of people, does it act as if it were a single
person? - ANS-Yes
Is a corporation allowed to make contracts but not borrow money? - ANS-No
Is it possible for a corporation to be used in its own name? - ANS-Yes
Can a person who buys only one share of stock become an owner of a corporation? -
ANS-Yes
Is a dividend the amount of money a person pays to buy a share of stock - ANS-No
Could a stockholder be responsible for all the debts of a corporation? - ANS-No
Can creditors collect from stockholders if the corporation fails? - ANS-No
Are the members of the board of directors elected by stockholders? - ANS-Yes
Can a corporation make important changes in te purpose of its business without
changing its charter? - ANS-No
When shares are transferred, must the transfer of ownership be indicated in the records
of the corporation? - ANS-Yes
Is the annual sales tax rate for corporations based on profits? - ANS-Yes
Is it possible for some corporations to avoid double taxation? - ANS-Yes
Does a joint venture occur when two major contractors agree to connect two cities by
building a tunnel under a river? - ANS-Yes
Do virtual corporations tend to be temporary relationships? - ANS-Yes
Does a cooperative provide members with both cost and profit advantages that they
would not have individually? - ANS-Yes
