Question

true or false I stockholders personal assets are at risk in a corporation

true or false
I stockholders personal assets are at risk in a corporation


Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

False

Explanation to the above answer:

Stockholders personal assets are not at risk in a corporation because the corporate form is different then partnership or proprietorships because in that form of business, the owner is personally liable for the debt while in the corporation, stockholders are not personally liable for the debt of the company. Though the shareholder are the owner of the business but they are liable up to the amount they have invested in the share and not more than this. So stockholders personal assets are not at risk in a corporation.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1(a). (TRUE or FALSE?) An unsecured bond is backed by specific assets pledged by the issuing...
1(a). (TRUE or FALSE?) An unsecured bond is backed by specific assets pledged by the issuing corporation. 1(b). (TRUE or FALSE?) With a variable-rate bond, the initial principal, face value, of the bond is adjusted according to an established timetable and a market rate index such as a Treasury bond rate or the London Interbank Offer Rate (LIBOR). 1(c). (TRUE or FALSE?) Owners of preferred stock have a priority claim over common stockholders to the earnings and assets of a...
True or False: risk-free asset should provide a return of 0%. Explain. I know that the...
True or False: risk-free asset should provide a return of 0%. Explain. I know that the answer is false. I just need to understand why a risk free rate is positive. Thank you.
Bill beat the market on a risk adjusted basis true or false The variance of returns...
Bill beat the market on a risk adjusted basis true or false The variance of returns on a portfolio of risky assets is a weighted sum of the variance of the individual assets. TRUE FALSE.
Stockholders' equity will be reduced by the amount in the dividends account. TRUE OR FALSE
Stockholders' equity will be reduced by the amount in the dividends account. TRUE OR FALSE
true/false 1. If total assets are increased, there must be a corresponding increase in liabilities or...
true/false 1. If total assets are increased, there must be a corresponding increase in liabilities or a decrease in stockholders’ equity. 2. If an expense account is credited, the expense account is increased. 3.The normal balance of an asset is a credit.
1. The main objective for all businesses is to maximize unrealized profits. True False 2. About...
1. The main objective for all businesses is to maximize unrealized profits. True False 2. About 90% of the businesses in the United States are organized as corporations. True False 3. The Financial Accounting Standards Board (FASB) is the authoritative body that has primary responsibility for developing accounting principles. True False 4. Generally accepted accounting principles regulate how and what financial information is reported by businesses. True False 5. If total assets increased by $190,000 during a specific period and...
Preferred stockholders have voting rights True False As the volatility of an investment increases, the standard...
Preferred stockholders have voting rights True False As the volatility of an investment increases, the standard deviation of that investment increases as well. True False
A corporation is recognized as a "person." A. True B. False A publicly held corporation is...
A corporation is recognized as a "person." A. True B. False A publicly held corporation is a private corporation. A. True B. False The primary document needed to incorporate a business is the articles of incorporation. A. True B. False
True or false? The securitization of mortgages increases the risk that the securitized mortgages will default....
True or false? The securitization of mortgages increases the risk that the securitized mortgages will default. Government securities and reserves are two liabilities of the Federal Reserve System. The Federal Deposit Insurance Corporation instituted risk based premium for deposit insurance since its inception.
#6 True or False? Financial risk and business risk are related in that, as business risk...
#6 True or False? Financial risk and business risk are related in that, as business risk increases so do financial risk.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT