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? 8. What special powers have the directors? In what way do the powers of officers and directors differ? 9. Name five of the necessary powers of a corporation, as such. Name three of the rights of an individual stockholder. 10. What is meant by a _dividend_? By whose authority are dividends declared? What is your understanding of the term _stock dividend_? 11. What class of records is implied by the term _corporation bookkeeping_? Name, and describe briefly, the books used in corporation bookkeeping. 12. Give examples of the proper entries on the books, under the following conditions: (a) The entire capital stock ($100,000.00) is subscribed and paid for in cash. (b) Only $60,000.00 of the stock is subscribed, but this is paid in cash. It is not desired to show on the books more capital than is paid in. (c) Cash subscriptions are received for $49,000.00 of an authorized issue of $100,000.00, but it is desired to show the total capitalization on the books. (d) The entire capital stock ($150,000.00) is subscribed but not paid in. It is desired to show the capital stock, without opening accounts in the general books with individual subscribers. (e) A payment of 20% is called for on the above stock. 13. A corporation is organized with a capitalization of $50,000.00 to take over the business of Henry Thompson. He is to pay his liabilities out of his assets, and transfer the balance of the property belonging to the business to the corporation, receiving $25,000.00 full paid stock. The following discloses the condition of his affairs: ASSETS Cash in Bank $1164.50 Accounts Receivable 3760.00 Real Estate 10000.00 Merchandise Inventory 7642.50 Furniture and Fixtures 600.00 $23167.00 -------- LIABILITIES Bills Payable 1000.00 1000.00 -------- -------- Balance $22167.00 What is the proper entry on the books of the corporation, the balance of the stock being unsubscribed? 14. A corporation agrees to purchase a mine, issuing $1,000,000.00 full paid stock in payment. The owner of the mine, to whom the stock is issued, agrees to donate to the company $500,000.00 of his stock to provide working capital. Subsequently, $100,000.00 of this stock is sold at 50% of its face value; $200,000.00 at 60%; $100,000.00 at 70%; and $100,000.00 at par. Working capital is maintained at the amount realized from the sale of the donated stock. Make all entries to show these transactions, it being understood that all subscriptions are paid in cash.