A Corporation Has Which of the Following Set of Characteristics

question 41

Multiple Choice

A corporation has which of the following set of characteristics?

• A)shareholder control, income tax disadvantages, increased skills and resources
• B)simple to set up and maintains control with founder
• C)harder to raise funds and gives shareholders control
• D)Easier to transfer ownership and raise funds, no personal liability

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Definitions:

Redemption Price

The amount paid to redeem a security or investment, often found in the terms of bonds or preferred stock.

Carrying Value

The book value of assets and liabilities as presented on a company’s balance sheet, which is the original cost minus any depreciation, amortization, or impairment costs.

Secured Bonds

Bonds that have specific assets of the issuer pledged as collateral.

Collateral

An asset pledged by a borrower to secure a loan or other credit, and subject to seizure if the loan is not repaid according to the agreed terms.