Corporations

Question 1

what are some shareholder rights

Answer 1

Share corporate earnings through dividends, share in the distribution of assets in a liquidation, preemptive stock ownership rights, [articaption at annual stockholders’ meeting.

Question 1

what is the role of stockholders in a corporation

Answer 1

they own the company and hire people to manage it

Question 2

what is the order of shares in a company?

Answer 2

Authorized, issued, outstanding, and treasury.

Question 3

what are issued shares

Answer 3

the total number of shares in a company that have been sold

Question 4

what are treasury shares

Answer 4

the number of issued shares that have been re-acquired or retired by the company.

Question 5

represents the legal value (not market value) of an issued stock. used as the basis for recording stock in the general ledger

Answer 5

par value of stock

Question 6

a type of stock that has priority over the normal class of stock in dividend distributions and distribution of assets in case of liquidation

Answer 6

preferred stock

Question 7

when is treasury stock recorded

Answer 7

at cost

Question 8

what are the 3 dates in dividend accounting time

Answer 8

declaration, record, and payment date

Question 9

why would a company give a stock dividend

Answer 9

to keep the stock market price affordable, and to boost confidence in management’s confidence in the state of the company

Question 10

a company issues 1,000 shares of 10 dollars each rather than having 200 shares of 50 dollars each. this is an example of a

Answer 10

stock split