Organization and Operation of Corporations MCQs

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Which feature is NOT an advantage to the corporate form of ownership?






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A shareholder who holds over 80% of the common shares cannot:






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Which is not a feature of the corporate form of ownership?






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The costs of establishing a corporation and getting it ready to provide the services, or sell or manufacture the product, for which it is being formed...






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The authority to declare dividends is given to the:






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An arbitrary value placed on shares at the time of its original issue is:






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Which of the following is not a right of common shareholders?






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A corporation issued 10,000 shares of common stock for $40 per share. The journal entry to record the issue of the shares would include:






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Which type of stock has the right to receive dividends forfeited in prior years, should earnings become adequate.






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Unpaid cash dividends on preferred shares that must be paid before any cash dividend can be declared and issued to the common shares are called:






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Whenever the dividend rate on preferred shares is less than the rate the corporation earns on its operations, then: