PAR 215 #8

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

Chapter 11 - Question 2: (a) What is meant by the limited liability of a stockholder? (b) Does this characteristic enhance or reduce a corporation’s ability to raise capital? (c) Explain.

1. State 5 ways in which a company might utilise its share premiums 2. Explain the following concept used in the preparation of financial statement    i. Relevance   ii. Reliability  iii. Faithfull representation  iv. Neutrality  v. Completeness  vi. Comparability 3. Explain three rights of preference shareholder over ordinary shareholder

QUESTION 10 Which of the following is an organizational disadvantage of a corporation?   A. Taxable entity   B. Separate legal entity   C. Relative ease of ownership transfer   D. Limited liability of owners

14 Which of the following statements best describes how a corporation determines its cost of capital?  Group of answer choices  The cost is a function of the issuance of interest-bearing instruments.  The cost is derived from determining the cost of each component in a firm's capital structure.  The cost is a function of temporary (short-term) sources of financing.  The cost is derived only from permanent investments by shareholders.

What term refers to funds provided in a business by its shareholders?   Question 19 options:     assets     equity     revenue     liabilities

Please answer all 3 subparts Question 1 (i) Stakeholder theory is best described as being based on the presumption that the corporation has direct concerns about its relationship with:A. The corporate regulatorB. The directors of the corporationC. The shareholders of the corporationD. A wide range of groups that affect and/or are affected by the corporation (ii) Under the _________, both internal and external corporate governance mechanisms are intended to induce managerial actions that maximize profit and shareholder value.A. Shareholder theoryB. Agency theoryC. Stakeholder theoryD. Corporate governance theory  (iii) Which one of the following statements is untrue?A. Companies should set up a remuneration committee consisting of independent non-executive directors. B. The remuneration of the non-executive directors should be determined by the executives.  C. The model articles provide that directors should not be permitted to determine their own levels of remuneration.D. Remuneration…

Corporate responsibility refers to fulfilling the responsibility or the obligation that a company has toward its ----------------------------------? a. Stock holders only b. Owners only c. All of the Stakeholders d. Government only

26 S1: Consolidated financial statements are typically prepared when one company has controlling financial interest unless such control is likely to be temporary.S2: Acquisition related costs in a business combination includes professional or consultancy fees, costs of registering and issuing debt and equity securities and general administrative costs.   Group of answer choices False; False False; True True; False True; True

1. Corporate financial management includes: (I) Corporate Investment; (II) Corporate Governance; (III) Financing and Security Issuing; (IV) Dividend and Payout Policy a. I and III only b. II and IV only c. I, II, III, and IV d. II only

Quèstion 4 The corporate form of business has all the following advantages EXCEPT: O A. No mutual agency for stockholders. O B. Separate legal entity. OC The life of a corporation is unlimited and ease of capital accumulation. O D. Stockholders have unlimited liabiliy.

Question 6 Which of the following is NOT a right possessed by common stockholders of a corporation? O a. the right to receive a minimum amount of dividends b. the right to vote in the election of the board of directors c. the right to sell their stock to anyone they choose d. the right to share in assets upon liquidation A Moving to the next question prevents changes to this answer.

please answer correct in detail Identify each of the following characteristics as being an advantage or a disadvantage of the corporate form of business or not applicable to the corporate form of business organization. 7. Ability to acquire capital    8. Ease of transfer of ownership

MULTIPLE CHOICE 6. Which of the following best represents the accounting equation for a corporation? a. Assets = Liabilities + Paid-In Capital b. Asset Liabilities + Treasury Stock c. Assets = Liabilities + Retained Earnings d. Assets Liabilities + Stockholders' Equity = =

Item 3 Which private company would benefit from using ASPE rather than IFRS? Multiple Choice company with a control block who owns the majority of the business company with operations internationally company interested in debt/equity financing in the external market company whose parent company is a major public corporation

Question Four  i. Discuss the reasons why small and medium-sized entities (SMEs) might experience less conflict between the objectives of shareholders and directors than large listed companies.                                                                                                                                            ii. Discuss the factors that a Company should consider when choosing a source of debt finance and the factors that may be considered by providers of finance in deciding how much to lend to the company.                                                                                iii. Discuss the costs associated with the stock outs of Inventory

Exercise 11-1 (Algo) Characteristics of corporations LO C1 Match each corporate characteristic 1 through 8 with the description that best relates to it. Characteristic 1. Tax status of income 2. Transferability of ownership 3. Ease of formation 4. Ability to raise large capital amounts 5. Government regulation 6. Duration of life. 7. Mutual agency 8. Legal status Descriptions

TOPIC: Introduction to Financial Management  1. Which of the following can be accepted as main points to note when it comes to a company's financial objective? O It is generally accepted that the main financial objective of a company should be to maximize (or at least increase) shareholder wealth. O There are practical difficulties in selecting a suitable measurement for growth in shareholder wealth. Financial targets such as profit maximization and growth in EPS might be used, but no financial target on its own is ideal. O Financial performance is therefore assessed in a variety of ways: by the actual or expected increase in the share price, growth in profits, growth in EPS, and so on.  2. Which of the following statement/s depicts agency relationships and conflicts?  I. The owners expect the agents to act in the best interests of the owners. Ideally, the 'contract' between the owners and the managers should ensure that the managers always act in the best interests of the…

From the corporation's perspective, the issuance of its stock is an example of which type of business activity? Select one: a. operating b. financing c. investing

1. What is the accounting treatment for a corporate organization cost?    a. Operating expense   b. Other asset   c. Intangible asset   d. Deduction from share capital

17. Dividends are recognized in profit or loss only when: a. The amount of the divident can be measured reliably b. The entity's right to receive payment of the dividend is established c. It is probable that the economic benefits associated with the dividend will flow to the entity. d. All of these

nestion 4 The authorized stock of a corporation a. must be recorded in a journal entry in the accounting records b. only reflects the initial capital needs of the company C. is indicated by the corporation's charter d. none of the above Moving to the next question prevents changes to this answer.

Question 6 Citigroup is an example of A) Financial holding company Full-service investment bank commercial bank D All of the above

4.3     Which of the following will constitute a line item in a close corporation’s statement of members’ net investment? A        Member’s contributions B        Revaluation surplus / reserve C        Loans from members D        Current accounts