Chapter 11 1. T F All publicly held corporations are regulated by the Securities and Exchange Commission. 2. T F Limited liability means that even in the event of bankruptcy, stockholders in a corporation can lose no more than the amount they invested in the company. 3. T F An S corporation allows a company to enjoy limited liability as a corporation, but tax treatment as a partnership. . T F Parvalue is the legal capital per share of stock that's assigned when the corporation is first founded. . T F A company credits additional paid-in capital for the portion of the cash proceeds above par value received for the issuance of stock.(Pages 576-578) 6. T F Treasury stock is the repurchase of a company's own issued stock. 7. T F Ifa company purchases shares of another company, it records this transaction as treasury stock 8. T F Stock repurchases reduce the number of shares outstanding, thereby increasing earnings per share. . T F Dividends are paid on all shares issued by the company including treasury stock. 10. T F Return on common stockholders' equity (ROE) measures the profitability from the stockholders' point of view.