Common shareholders usually have all of the following rights except: To receive

Question

Common shareholders usually have all of the following rights except: To receive dividends when declared. To share in the distribution of assets. To elect board of directors. To participate in the day-to-day operations. Which of the following is a reason that a corporation would prefer to issue stock instead of bonds? Dividend payments can be deducted for income tax purposes but interest payments cannot. Expansion is accomplished without surrendering ownership control. The risk of going bankrupt is less. All of the above are reasons for issuing stock. Advantages of the corporate form of business include: Double taxation Ability to raise capital Lack of mutual agency More paperwork Limited liability II..II, III., V. I, II., III. II, IV., V. Authorized common stock refers to the total number of shares: Outstanding. Issued. Issued and outstanding. That can be issued. The par value of common stock represents: The legal capital per share of stock assigned when the corporation is first established. The liquidation value of a share. The market value of a share of stock. The amount received when the stock was issued.

Explanation / Answer

The correct answers are C D B A B

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