Question : 44. Topper Corporation has 60,000 shares of $1 par value common : 1229392

44. Topper Corporation has 60,000 shares of $1 par value common stock and 16,000 shares of cumulative 7%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per share dividend this year, what will be the total amount they must pay their shareholders? 
A. $117,000.
B. $341,000.
C. $327,000.
D. $177,000.

45. Which of the following is not a characteristic of the corporate form of organization? 
A. The owners of a corporation cannot lose more than the amount of their investment.
B. Shares of stock in a corporation are more readily transferable than is an interest in a partnership.
C. Stockholders have authority to decide by majority vote the amount of dividends to be paid.
D. The corporation is a very efficient vehicle for obtaining large amounts of capital required for large-scale production.

46. Most preferred stocks have the following characteristics, except: 
A. To receive dividends on a preferred basis.
B. Cumulative dividends.
C. Voting rights.
D. Callable at the option of the corporation.

47. Which of the following is not an addition to total paid-in-capital? 
A. Retained earnings.
B. Treasury stock.
C. Neither retained earnings nor treasury stock.
D. Both retained earnings and treasury stock.

48. A primary disadvantage of the corporate form of organization is: 
A. Unlimited personal liability for business debts.
B. Ownership is difficult to transfer.
C. Corporate earnings are subject to double taxation.
D. Management is separated from ownership.

49. Public corporations are required by law or regulation to perform all of the following except: 
A. Submit much of their financial information to the SEC for review.
B. Make regularly scheduled dividend payments to all stockholders.
C. Have their annual financial statements audited by an independent CPA.
D. Disclose their financial information to the public.

50. Which of the following is not a right of stockholders? 
A. To vote for directors and on key issues.
B. To participate in dividends declared.
C. To share in the distribution of assets if the corporation is liquidated.
D. To select the Chief Executive Officer.

51. The rights of a common stockholder do not include the right: 
A. To vote for directors.
B. To withdraw a share of corporate net assets proportionate to the person’s stockholdings.
C. To receive a proportionate share of corporate assets upon liquidation, after creditors have been paid.
D. To share in profits when the board of directors declares a dividend.

52. The directors of a corporation: 
A. Are hired by the officers to run the business on a day-to-day basis.
B. May not own stock in the same corporation or be officers of the same corporation.
C. Are responsible for formulating corporate policy and for hiring corporate officers.
D. Are elected by the shareholders to run day-to-day operations.

53. Which of the following individuals has the most power to influence corporate policy on a long-term basis? 
A. A shareholder owning 60% of the outstanding common stock.
B. A shareholder owning 80% of the outstanding preferred stock.
C. The treasurer of the corporation.
D. The controller of the corporation.