Which of the following parties cannot be granted shares or share options by the entity? O Supplier of goods and services O Non-executive director O None of the foregoing O Chief accountant
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- Which 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 servicesWhich 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.When an individual owns directly stocks of the company, he has: Group of answer choices a. Direct Financial Interest b. Indirect Financial Interest c. Both Direct and Indirect d. Neither Direct nor Indirect
- Which of the following statements correctly relate to ordinary shares? i) They represent an ownership interest.ii) Ordinary equity holders are the first to have their claims met in the event of the company going into administration.iii) As dividends are the return to the shareholders, they are paid out of operating profits before tax.iv) Control rights often differ between ordinary and other classes of share.Which feature is not applicable to common stock ownership?a. Right to receive dividends before preferred stockshareholders.b. Right to vote on appointment of external auditor.c. Right to receive residual assets of the company shouldit cease operations.d. All of the above are applicable to common stockownership.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? a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liability
- When shares are issued in exchange of legal services in order to incorporate an entity, the proper account to be debited is ______________, and the amount should be equal to _______________. a. Legal fees, fair value of the services b. Organization costs, par value of the shares c. Organization costs, fair value of the services d. Organization costs, fair value of the shares e. Legal fees, par value of the sharesWhen share options issued to employees are exercised, the entity shall make a transfer among equity components do nothing recognize a gain for the unamortized balance recognize a loss for the unamortized balanceWhich 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
- The Issue of share of a company to only investors of our choice is known as; a. Offer for sale b. Right issues c. Public issue d. Private PlacementWhich of the following statements is true in relation to a limited liability company? A A limited liability company can incur liabilities in its own name B A limited liability company cannot acquire assets in its own name C A limited liability company cannot incur liabilities in its own name D A limited liability company can be formed on an informal basis by simple agreement between the first sharehopldersWhich of the following characteristics of a corporation limits a stockholders losses to the amount of investment in the stock of the corporation? Transferability of ownership Limited liability Separate legal entity