Owners of preference shares often do not have: A Voting rights. B The right to sell their shares on the open market. C Preference to dividends. D Ownership rights to assets of the corporation.
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A
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Voting rights.
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B
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The right to sell their shares on the open market.
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C
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Preference to dividends.
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D
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Ownership rights to assets of the corporation.
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- Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the discretion of directors b) They give voting rights at meetings c) They are irredeemable d) Interest is accrued if the dividend is not paidTrue or False. Please explain. Shares cannot be transferred without the consent of the other shareholders.Which feature is not applicable to common stock ownership?a. Right to receive dividends before preferred stockshareholders.b. Right to vote on appointment of external auditor.c. Right to receive residual assets of the company shouldit cease operations.d. All of the above are applicable to common stockownership.
- Critically discuss this statement, do you agree with it? "Although a rights issue allows shareholders to purchase shares below market value, it may not increase shareholder value"Identify the term being referred to: A theory that states that how high or low an entity pays out dividends does not affect the decisions of investors. *Preferred shares are least likely to have which of the following characteristics? A. Preference as to assets on liquidation of the corporation. B. Preference as to dividends. C. Extra liability for the preferred shareholders. D. The right of the holder to convert to common shares.
- What is meant by Forfeiture of shares?If a publicly traded company is trying to maximize its perceived value to decision makers external to the corporation, the company is most likely to report too small a valuefor which of the following on its balance sheet?a. Assetsb. Liabilitiesc. Retained Earningsd. Common StockCommon stockholders; a. have the first claim on the income and assets of the firm b. contribute towards a firm's debt capital c. do not have voting rights in general d. No option is correct
- Preferred stock is least likely to have which of the following characteristics?a. Preference as to assets on liquidation of the corporationb. The right of the holder to convert the shares to common stockc. Preference as to votingd. Preference as to dividendsWhich of the following statements correctly relate to ordinary shares? i) They represent an ownership interest.ii) Ordinary equity holders are the first to have their claims met in the event of the company going into administration.iii) As dividends are the return to the shareholders, they are paid out of operating profits before tax.iv) Control rights often differ between ordinary and other classes of share.Answer the follow: Explain the corporate characteristic termed “no mutual agency" Explain the corporate characteristic termed limited liability. Explain the term outstanding stock. Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferred stock? Is it true or false that all forms and classes of stock carry voting rights? Is it true of false that stock sold for amounts in excess of par value results in a gain reported on the income statement?