10. Discontinuable Notes may be exchanged for a fixed number of common shares of the issuing company. True False 1. A corporation is a separate legal entity from its owners. True False 3. The costs of organizing a business often include attorneys` fees and promoter fees. True False A business is a separate legal entity from its owners. This means that the company`s ownership shares can be traded with the permission of the board of directors. 6. Shares are attractive to investors because shareholders are not responsible for the company`s shares and debts and because shares can be easily transferred.
True False 5. A subscription right means that shareholders may acquire their proportionate share of common shares that will subsequently be issued by the Company. True False What is the most important difference between a company and all other forms of organization? 7. One of the similarities in bond and share financing is that dividends and share distribution payments are tax deductible. True False 4. Ordinary shareholders always share dividends equally with all other shareholders. True False. 11.
The nominal value of a bond does not necessarily correspond to its market value. True False None of the other forms of organization share this property. 9. Bonds due have an option that the issuer may exercise to withdraw them at a certain amount in dollars before maturity. True False 2. Companies avoid many of the government regulations and controls that companies and partnerships are subject to. True false 8. Fixed-term bonds mature on a specific date, while serial bonds mature on more than one date. True False.
12. The carrying amount of a long-term bond shall be calculated as the present value of all remaining future payments, discounted at the market interest rate at the time of issue. True False.
