Quiz Module 11 ?s

Question 1

Which statement accurately describes a shareholder’s preemptive rights?

The right to vote on directors

The right to retain their proportional ownership in a company should it issue another stock offering

The right to claim a company’s remaining assets after a liquidation

The right to purchase new shares issued by the company

Answer 1

The right to retain their proportional ownership in a company should it issue another stock offering

Question 2

Which answer is not a benefit associated with common stock?

Guaranteed dividends

The right to vote on who gets to sit on the company’s Board of Directors

The right to vote on corporate objectives and policy

Preemptive rights

Answer 2

Guaranteed dividends

Question 3

Which feature is generally not associated with preferred stock?

Convertibility to common stock

Preference in dividends

Voting rights

Callability at the option of the corporation

Answer 3

Voting rights

Question 4

Which answer is not a true statement regarding voting rights?

Corporate shareholders are prohibited from casting their vote online.

Shareholders generally get to vote on who is part of the corporate Board of Directors.

Preferred stock generally does not carry voting rights.

Generally each share of common stock equals one vote.

Answer 4

Corporate shareholders are prohibited from casting their vote online.

Question 5

Which answer is generally not a right granted to owners of preferred shares?

Callability

Convertibility to common shares

Preference with regards to receiving dividends

Variable dividend amounts

Answer 5

Variable dividend amounts