18 Questions
What is the proportionate interest after the new issue of shares?
8 percent
A Close Corporation is characterized by:
Having its stock limited to selected people or family members
What is the total Stockholders’ equity at present?
$4,000,000
What is the value of one share after the new issue of shares?
$166.67
Dividends may be classified as:
Cash Dividends – paid to stockholders
In what type of corporation is the company created under the laws of the Philippines?
Domestic Corporation
What is the primary benefit of a company having more equity for creditors?
Lower interest rates on loans
What does 'Issued Stock' refer to?
Shares of authorized stock that have been sold to investors
Which form of capital stock represents the maximum number of shares a company can sell to investors?
Authorized Stock
What is the primary difference between Common Stock and Preferred Stock?
Voting rights
What right do Common Stockholders have that gives them the ability to purchase new shares before they are offered to the public?
Preemptive rights
What type of voting gives shareholders the ability to cast all votes for one member of the board?
Cumulative voting
Which form of business organization does the text describe as having 'Partners' Equity'?
Partnership
What type of shares are described as having a maturity date in the text?
Preferred Shares
Which type of business entity can buy back its own shares?
Corporation
What gives companies more flexibility, according to the text?
Selling shares of ownership
Which type of share has a right to dividends before common shareholders?
Preferred Shares
What is the main advantage of equity financing over debt financing, based on the text?
Flexibility in payment terms
Learn about how a company's equity affects its risk level for creditors and how different types of stock, such as Authorized Stock, Issued Stock, and Reacquired Stock, play into a company's financial structure.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
