ACC2218 Company Accounts

A shareholder has the right to vote in the election of the board of directors

Stockholders of a corporation directly elect

Which one of the following would not be considered an advantage of the corporate form of organization?

Preferred stockholders have a priority as to dividends but not to assets in the event of liquidation.

Retained earnings is net income retained in a corporation.

A corporation is bound to a contract entered into by one of its stockholders.

The two ways that a corporation can be classified by ownership are

A privately held corporation does not offer its share for sale to the general public.

Stock can be issued only in exchange for cash.

The par value of common stock must always be equal to its market value on the date the stock is issued.

A corporation is not an entity which is separate and distinct from its owners.

Shareholders’ liability is generally unlimited; creditors have right to shareholders’ personal and corporate assets

A corporation acts under its own name rather than in the name of its shareholders.

If a company has 900K authorized shares, and 750K shares issued, par value of $1 per share, so GL for common share is