117. Expenses are regular cash payments by a corporation to its stockholders. FALSE Dividends are payments to stockholders. 118. Dividends represent a return of the company's profits to its owners, the stockholders. TRUE 119. One of the differences between a partnership and a corporation is that owners of a partnership have limited liability. FALSE Stockholders of a corporation have limited liability. 120. Limited liability means the stockholders are not held personally responsible for the financial obligations of the corporation. TRUE 121. One advantage of the corporate form of business is double taxation. FALSE Double taxation is a disadvantage of the corporate form of business.
117. Expenses are regular cash payments by a corporation to its stockholders. FALSE Dividends are payments to stockholders. 118. Dividends represent a return of the company's profits to its owners, the stockholders. TRUE 119. One of the differences between a partnership and a corporation is that owners of a partnership have limited liability. FALSE Stockholders of a corporation have limited liability. 120. Limited liability means the stockholders are not held personally responsible for the financial obligations of the corporation. TRUE 121. One advantage of the corporate form of business is double taxation. FALSE Double taxation is a disadvantage of the corporate form of business.
Accounting%20Information%20and%20Decision%20Making.docx