A. It is worse type of business organization.
B. The minimum number of incorporators to start a corporation is three.
C. Its life is dependent on the lives of the incorporators.
D. The stock holders of the corporation are only liable to the extent of their investments.
Related Mcqs:
- What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation ?
A. Bond
B. T-bills
C. Stock
D. Promissory note - What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled ?
A. Authorized capital stock
B. Preferred stock
C. Incorporator stock
D. Common stock - The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ___________________?
A. Dividend
B. Return
C. Share of stock
D. Equity - What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund ?
A. T-bills
B. Securities
C. Bond
D. Bank notes - Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note?
A. P18,000
B. P18,900
C. P19,000
D. P19,100 - ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?
A. 7 eyars
B. 8 years
C. 9 years
D. 10 years - What bond whose security is a mortgage on certain specified assets of the corporation ?
A. Registered bond
B. Collateral trust bond
C. Mortgage bond
D. Debenture bond - A bond without any security behind them except a promise to pay by the issuing corporation is called __________________?
A. Joint bond
B. Debenture bond
C. Trust bond
D. Common bond - A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries ?
A. Mortgage bond
B. Joint bond
C. Security bond
D. Collateral trust bond - What type of bond where the corporation’s owner name are recorded and the interest is paid periodically to the owners with their asking for it ?
A. Preferred bond
B. Registered bond
C. Incorporators bond
D. Callable bond
