1. Which level of government is responsible for issuing charters for most corporations? a. city
government b. federal government c. county government d. state government 2. What is an
advantage of the LLC form of business? a. It is a corporate entity that avoids federal corporate
income tax. b. It does not have to register with state government. c. It can transfer ownership
easier than a corporation. d. It can sell additional shares of the LLC without any individual
approvals. 3. What is the role of stockholders in running the business of a corporation? a. to
decide on operating hours of the entity b. to elect the board of directors c. to appoint a CFO d. to
sign the tax returns of the corporation 4. The stockholders of a corporation: a. have the power to
act for the business unless specifically prohibited by the corporate charter. b. are generally liable
for the debts of the corporation. c. can sell their shares of stock without permission from other
stockholders. d. are forbidden to be employees of the corporation. 5. In a corporate organization,
the stockholders: a. must pay federal income tax on their proportional shares of profits reported
by the corporation. b. have the right to surrencler preferred stock to the corporation at any time
for a payment equal to the par value of the stock. c. hire the corporate officers. d. are entitled to a
proportionate share of dividends declared on their classes of stock. What reasons may Lucia use
to support their decision to incorporate? a. double taxation of income b. protection of personal
assets and limiting their individual liability c. paying dividends to themselves d. none of the
above.
1. Which level of government is responsible for issuing charters for .pdf
1. 1. Which level of government is responsible for issuing charters for most corporations? a. city
government b. federal government c. county government d. state government 2. What is an
advantage of the LLC form of business? a. It is a corporate entity that avoids federal corporate
income tax. b. It does not have to register with state government. c. It can transfer ownership
easier than a corporation. d. It can sell additional shares of the LLC without any individual
approvals. 3. What is the role of stockholders in running the business of a corporation? a. to
decide on operating hours of the entity b. to elect the board of directors c. to appoint a CFO d. to
sign the tax returns of the corporation 4. The stockholders of a corporation: a. have the power to
act for the business unless specifically prohibited by the corporate charter. b. are generally liable
for the debts of the corporation. c. can sell their shares of stock without permission from other
stockholders. d. are forbidden to be employees of the corporation. 5. In a corporate organization,
the stockholders: a. must pay federal income tax on their proportional shares of profits reported
by the corporation. b. have the right to surrencler preferred stock to the corporation at any time
for a payment equal to the par value of the stock. c. hire the corporate officers. d. are entitled to a
proportionate share of dividends declared on their classes of stock. What reasons may Lucia use
to support their decision to incorporate? a. double taxation of income b. protection of personal
assets and limiting their individual liability c. paying dividends to themselves d. none of the
above
