Podcast
Questions and Answers
What is the primary right of shareholders in terms of dividends?
What is the primary right of shareholders in terms of dividends?
- Right to vote on matters that come before the shareholders
- Right to receive a proportionate part of any dividend (correct)
- Right to maintain one's proportionate ownership in the corporation
- Right to receive a proportionate share of assets left upon liquidation
What is the term for the amount of shareholders' equity that a corporation has earned through profitable operations?
What is the term for the amount of shareholders' equity that a corporation has earned through profitable operations?
- Dividend distribution
- Paid-in capital
- Accumulated deficit
- Retained earnings (correct)
What is the authority responsible for declaring cash dividends?
What is the authority responsible for declaring cash dividends?
- Shareholders
- Board of directors (correct)
- Management team
- Auditors
What is the effect of a stock split on par value?
What is the effect of a stock split on par value?
What is the purpose of the date of record in the dividend payment process?
What is the purpose of the date of record in the dividend payment process?
What is the term for the accumulated balance of a corporation's earnings, reduced by dividends and losses?
What is the term for the accumulated balance of a corporation's earnings, reduced by dividends and losses?
What is the primary reason why a corporation's board of directors may not declare a cash dividend?
What is the primary reason why a corporation's board of directors may not declare a cash dividend?
What is the result of a corporation's lifetime losses and dividends exceeding its lifetime earnings?
What is the result of a corporation's lifetime losses and dividends exceeding its lifetime earnings?
What is the purpose of the pre-emption right of shareholders?
What is the purpose of the pre-emption right of shareholders?
What is the difference between a corporation's retained earnings and its paid-in capital?
What is the difference between a corporation's retained earnings and its paid-in capital?
What is the effect of a corporation's liquidation on its shareholders?
What is the effect of a corporation's liquidation on its shareholders?
What is the primary reason why a corporation's shareholders have the right to vote on matters that come before the shareholders?
What is the primary reason why a corporation's shareholders have the right to vote on matters that come before the shareholders?
