Which one of the following rights is never directly granted to all shareholders of a publicly held corporation? Multiple Choice О Electing the board of directors Determining the amount of the dividend to be paid per share О Having first chance to purchase any new equity shares that may be offered О Receiving a distribution of company profits о Voting either for or against a proposed merger or acquisition
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- Which of the following is not a right of owners of common shares? Residual assets in liquidation Vote on proposed mergers Vote for company directors Obtain past dividends not paidWhich one of the following is a primary market transaction? Multiple Choice Sale of currently outstanding stock by a dealer to an individual investor Sale of a new share of stock from a corporation to an individual investor Transfer of stock ownership from one shareholder to another shareholder Gift of stock from one shareholder to a previous non-shareholder Repurchase of stock by a corporation from a shareholderThe excess of issue price over par of common stock is termed a(n) a. income O b. premium C. discount O d. deficit
- NoneWhich of the following is a characteristic of common stock?a. The right to the residual income after creditors have been paidb. Limited liability in the case of the corporation going bankruptc. Voting rights to elect the board of directorsd. The right to maintain a proportionate share of ownership in the firm (when new shares are issued, stockholders have the first right of refusal)e. All of the aboveWhich of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? Question 7Answer a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liability
- 1. The pre-emptive right of a common stockholder is the right to Choices; share proportionately in corporate assets upon liquidation. share proportionately in any new issues of stock of the same class. receive cash dividends before they are distributed to preferred stockholders. exclude preferred stockholders from voting rights. 2. In computing diluted earnings per share, interest expense on convertible bond payable should be Choices ignored Added back to net income net of tax Added back to net income at gross Deducted from net income net of tax Clear selectionwhich of the following may be revoked by the board of directors after it has been declared? a) A share dividend b) An equitable distribution. c) a property prescription. d) a cash dividendQuestion 1
- The ability of any stockholder to transfer stock to another person without the knowledge or the consent of the other stockholders and without disturbing the normal activities of the corporation is called a. unlimited life. b. suitability for large scale operations. c. taxation of corporate earnings. d. transferable ownership units.The Issue of shares to only the existing shareholders of the same company is known as; a.Private Placement b.Offer for sale c.Right issues d.Public issueWhich of the following parties cannot be granted shares or share options by the entity? A. Chief accountant B. Non-executive director C. None of the foregoing D. Supplier of goods and services