Answered: 1. A share capital which has priority…

1. A share capital which has priority as to the payment of dividends. * Choices; Promotion share capital Preference share capital Ordinary share capita Treasury share capital

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 17MCQ

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Question

1. A share capital which has priority as to the payment of dividends. *

Choices;

Promotion share capital

Preference share capital

Ordinary share capita

Treasury share capital

2. A corporation existing in fact and in law

Choices;

De facto corporation

De jure corporation

Domestic corporation

Foreign corporation

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

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