Thursday, 18 August 2016

If the assets owned by a business total $150,000 and liabilities total $105,000, stockholders’ equity totals $45,000.

Most business enterprises in the United States are

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corporations.

government units.

proprietorships and partnerships.

partnerships.


If the assets owned by a business total $150,000 and liabilities total $105,000, stockholders’ equity totals $45,000.

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True

False

A local retail shop has been operating as a sole proprietorship. The business is growing and now the owner wants to incorporate. Which of the following is not a reason for this owner to incorporate?

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desire to limit the owner’s personal liability

the prestige of operating as a corporation

ability to raise capital for expansion

the ease in transferring shares of the corporation’s stock

Stockholders’ equity is comprised of

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common stock and dividends.

dividends and retained earnings.

net income and retained earnings.

common stock and retained earnings

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