111. Proprietorships are not separate legal entities; their earnings are taxable to the owners and not to the business itself.
112. A partner is responsible for his/her own actions, but not for actions taken by another partner on behalf of the partnership.
113. Lack of ease in transferability of ownership is one of the important disadvantages of the corporate form of business organization.
114. The balance sheet of a sole proprietorship will report two equity accounts: one for amounts contributed by the owner, and one for the earnings of the business.
115. A distribution by a sole proprietorship to the owner is called a withdrawal.
116. A separate capital account would be maintained for each partner in a partnership.
117. The book value of a share of stock is equal to the market or selling price of the stock.
118. The number of shares of stock outstanding generally is greater than the number of shares of stock issued.
119. The class or type of stock that every corporation must have is preferred stock.
120. Preferred stockholders generally have no voting rights in a corporation.