Answer: 1. True
2. True
3. False
4. True
5. False
6. False
7. False
8. False
9. True
10. False
Explanation:
A corporation is an entity that is separate and distinct from its owners. A corporation enjoys some of the rights that individuals possess as they can own assets, enter contracts, sue and be sued, loan and borrow money, hire employees, and pay taxes.
Most of the largest U.S. corporations are publicly held corporations. The net income of a corporation is taxed as a separate entity. When a corporation doesn't fulfill its obligation to pay a debt, the creditors have no legal claim on the personal assets that the owners of a corporation possess.
In the case of transfer of stock.from one person to another, the approval of other stakeholders or corporation is not required. The shareholders are the legal owners of the corporation while the chief accounting officer is the controller.
Corporations are subject to more state and federal regulations than sole proprietorships and partnerships.
Answer:
The correct answer is C
Explanation:
Bank asset is the assets which represent the ownership of the value capable of being converted into cash. So, the reserve which the banks hold or refrain from using will be classified as the asset for the bank. And the deposit made by the customer will be classified as the current liability as the bank allows the customers to use their deposits whenever they want to use.
Therefore, the reserve is a part of bank asset whereas the deposits will not be a part of bank asset.
Answer:
c. Facing hard rationing.
Explanation:
In this scenario, the CFO of Edward's Food Distributors is continually receiving capital funding requests from its division managers. These requests are seeking funding for positive net present value projects. The CFO continues to deny all funding requests due to the financial situation of the company. Apparently, the company is facing hard rationing.
Hard rationing can be defined as a capital budget that an organization is expected to adhere strictly to, as a result of limited or few resources availability and as such there is no room for errors or modifications in the short run.