Question :
11) The owners of common stock do NOT have the : 1253386
11) The owners of common stock do NOT have the specific right to ________.
A) vote for members of the board of directors
B) share in the corporation’s earnings
C) share in any assets left when a company declares bankruptcy
D) receive dividends before preferred shareholders
12) The owners of ________ stock have the specific right to vote for members of the board of directors.
A) common
B) preferred
C) treasury
D) both common and preferred
13) A monetary value assigned to and printed on each share of stock is called ________.
A) additional paid-in capital
B) paid-in capital
C) par value
D) retained earnings
14) Investors purchase preferred stock because preferred ________.
A) stock offers a possibility of a specified annual dividend
B) dividends are increased each year
C) shareholders have voting rights
D) stock can always be converted to common stock
15) AZ Best, Inc.’s corporate charter allows it to issue 1,500,000 shares of common stock. In 2011, its first year of business, the company sold 200,000 shares of common stock. In 2011, the company bought back 5,000 shares to be held as treasury stock. At December 31, 2011, how many shares of common stock are authorized?
A) 5,000 shares
B) 1,300,000 shares
C) 200,000 shares
D) 1,500,000 shares
16) AZ Best, Inc.’s corporate charter allows it to issue 1,500,000 shares of common stock. In 2011, its first year of business, the company sold 200,000 shares of common stock. In 2011, the company bought back 5,000 shares to be held as treasury stock. At December 31, 2011, how many shares of common stock are issued?
A) 5,000 shares
B) 1,300,000 shares
C) 200,000 shares
D) 1,500,000 shares
17) AZ Best, Inc.’s corporate charter allows it to issue 1,500,000 shares of common stock. In 2011, its first year of business, the company sold 200,000 shares of common stock. In 2011, the company bought back 5,000 shares to be held as treasury stock. At December 31, 2011, how many shares of common stock are outstanding?
A) 5,000 shares
B) 1,300,000 shares
C) 200,000 shares
D) 195,000 shares
18) The state charter of Vest Corporation allows the corporation to sell 500,000 shares. Vest has issued 425,000 shares of stock. There are 15,000 shares of treasury stock. The number of outstanding shares is ________ shares.
A) 15,000
B) 410,000
C) 425,000
D) 500,000
19) Cartier, Inc.’s corporate charter allows it to sell 1 million shares of $0.50 par value common stock. As of December 31, 2011, the company had sold 500,000 shares for $4 each. Cartier has 20,000 shares of treasury stock that cost $100,000. On the December 31, 2011 balance sheet, the number of shares authorized is ________ shares.
A) 1,000,000
B) 500,000
C) 480,000
D) 400,000
20) Cartier, Inc.’s corporate charter authorizes it to sell 1 million shares of $0.50 par value common stock. As of December 31, 2011, the company had sold 500,000 shares for $4 each. Cartier has 20,000 shares of treasury stock that cost $100,000. On the December 31, 2011 balance sheet, the number of shares issued is ________ shares.
A) 1,000,000
B) 500,000
C) 480,000
D) 400,000
