Please answer the following statements as either true or false. Mutual agency means each partner can bind or commit the partnership to any contract within the scope of the partnership's business 2. in a limited partnership the general partner has unlimited liability.
Authorized stock is the total number of shares outstanding.
Stockholders' equity is composed of contributed capital and retained earnings. One of the preference rights for preferred stock is the right to vote. If a partner is unable to cover a deficiency and the other partners absorb the deficiency then that partner is thus relieved of all liability. Organization costs may be paid for giving stock to promoters of a corporation in exchange for their services in organizing the corporation. A stock dividend decreases the market price of the company stock.