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

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.

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?

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

common stock and dividends.

dividends and retained earnings.

net income and retained earnings.

common stock and retained earnings