Response to the following questions:
1. Describe the stockholders' liability to creditors of a corporation.
2. Why is it said that the earnings of a corporation are subject to double taxation? Discuss.
3. Why are most large businesses organized as corporations?
4. Of two corporations organized at approximately the same time and engaged in competing businesses, one issued $50 par common stock, and the other issued $1 par common stock. Do the par designations provide any indication as to which stock is preferable as an investment? Explain.