Which is an advantage of the corporate form of ownership

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Problem 1: A share dividend

a. leaves total shareholders' equity unchanged.

b. increases total liabilities.

c. decreases assets.

d. decreases shareholders' equity.

Problem 2: Which of the following actions does not decrease working capital?

a. Paying a dividend

b. Paying off long-term bonds three years before the maturity date

c. Declaring a cash dividend

d. Buying machinery for cash

Problem 3: Which of the following is an advantage of the corporate form of ownership?

a. Difficulty of formation

b. Lack of secrecy.

c. Limited liability

d. Expense of incorporation and selling stock

Reference no: EM132804048

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