Common shareholders have pre-emptive rights which allow them to ____________________. Group of answer choices a) vote on important matters that affect their interest b) sell their shares to the firm at a pre-determined price c) maintain their proportionate share of ownership in the company d) exercise claims on the firm’s assets prior to preferred shareholders

Common shareholders have pre-emptive rights which allow them to ____________________. Group of answer choices a) vote on important matters that affect their interest b) sell their shares to the firm at a pre-determined price c) maintain their proportionate share of ownership in the company d) exercise claims on the firm’s assets prior to preferred shareholders

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 12DQ

See similar textbooks

Similar questions

Your friend is considering incorporating and asks for advice. Which of the following is not a major concern? A. colors for the logo B. which state in which to incorporate C. number of shares of stock to authorize D. selection of the corporation name
Identify which category of shareholder's equity is affected by each item and briefly explain how it is affected. 1. Sale of additional ordinary shares of the corporation
Which of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.
Which 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 above
Owners of preference shares often do not have: A Voting rights. B The right to sell their shares on the open market. C Preference to dividends. D Ownership rights to assets of the corporation.
What is the control requirement of § 351? Describe the effect of the following in satisfying this requirement: A shareholder renders only services to the corporation for stock. A shareholder renders services and transfers property to the corporation for stock. A shareholder has only momentary control after the transfer. A long period of time elapses between the transfers of property by different shareholders.
The right of a shareholder to share proportionally in any new stock issue is called a/an ____________ right. Select one: a. coattail b. preemptive c. indenture d. secured e. charter
Which 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
Which of the following statements is NOT correct about the rights granted to common stockholders? Group of answer choices a. Stockholders may transfer their right to vote to a second party by means of a proxy. b. Dividends due to common stockholders are cumulative. c. Common stockholders have the right to elect a firm's directors. d. In large, publicly traded firms, managers typically have some stock but their personal holdings are generally insufficient to win voting control.
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 issue
When a public shareholding company changes an accounting policy voluntarily, it has to (a) Inform shareholders prior to taking the decision. (b) Account for it retrospectively. (c) Treat the effect of the change as an extraordinary item. (d) Treat it prospectively and adjust the effect of the change in the current period and future periods.
1. Under Application Guidance 36 of IAS 32, an entity’s own equity instruments also known as treasury shares shall be presented as Group of answer choices a. Financial asset b. Financial liability c. Deduction in the shareholder’s equity at par value or stated value d. Deduction in the shareholder’s equity at cost