28. Prepare a complete solution of the problem given in Art. 42, Page 74.
REVIEW QUESTIONS
ON THE SUBJECT OF
CORPORATION ACCOUNTS
1. Into what two general classes are corporations divided? Name and give examples of two classes of private corporations.
2. How are joint stock companies distinguished from corporations? In what ways are they like corporations?
3. How are corporations created? Name 5 common requirements of the certificate of incorporation or application for a corporate charter.
4. What is meant by a stockholder, and how may a person become a stockholder in a corporation? What is a stock certificate?
5. What is meant by the capitalization of a corporation? What is the difference in meaning of the terms capital and capital stock, as these terms are usually understood?
6. Define the two principal classes of stock issued by corporations. Name and define two kinds of preferred stock. What is meant by the term treasury stock? Watered stock?
7. By whom are the affairs of a corporation managed? From whom do they receive their authority? Has a director, as such, the power individually to bind the corporation?