Question : 51. Most publicly traded firms operate as corporations. Which of the : 1230428

51. Most publicly traded firms operate as corporations. Which of the following is/are not true? A. The corporate form facilitates the transfer of ownership interests because owners can sell their shares without affecting the ongoing operations of the firm. B. The transfer of ownership interests is a transaction between the shareholder and the firm whose shares change hands. C. Investors make capital contributions under a contract between themselves and the corporation. D. The corporation has legal status separate from its owners. E. none of the above

52. Various laws and contracts govern the rights and obligations of a shareholder.  Which of the following is not true? A. The corporation laws of the jurisdiction in which incorporation takes place govern the rights and obligations of a shareholder. B. The articles of incorporation or the corporate charter sets out the agreement between the firm and the jurisdiction in which the business incorporates. C. The board of directors adopts bylaws, which are the rules and regulations governing the internal affairs of the corporation. D. The jurisdiction grants to the firm the privileges of operating as a corporation for certain stated purposes and of obtaining its capital through the issue of shares of stock. E. none of the above

53. Various laws and contracts govern the rights and obligations of a shareholder.  Which of the following is not true? A. The corporation laws of the jurisdiction in which incorporation takes place govern the rights and obligations of a shareholder. B. The articles of incorporation or the corporate charter sets out the agreement between the firm and the jurisdiction in which the business incorporates. C. The board of directors adopts bylaws, which are the rules and regulations governing the internal affairs of the corporation. D. The U.S. Government grants to the firm the privileges of operating as a corporation for certain stated purposes and of obtaining its capital through the issue of shares of stock. E. none of the above

54. Various laws and contracts govern the rights and obligations of a shareholder.  Which of the following istrue? A. Each type of capital stock has its own provisions on voting matters, only. B. Each type of capital stock has its own provisions on sharing in earnings matters, only.  C. Each type of capital stock has its own provisions on distributing assets generated by earnings matters, only.  D. Each type of capital stock has its own provisions on sharing in assets in case of dissolution of the firm.matters, only.  E. Each type of capital stock has its own provisions on such matters as voting, sharing in earnings, distributing assets generated by earnings, and sharing in assets in case of dissolution of the firm. .

55. Which of the following is not true? A. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders.  B. Preferred shares carry special rights.  C. The senior status and special rights may induce certain investors to purchase preferred shares of a firm, even though they would be unwilling to purchase common shares of the same firm.  D. The senior status and special rights increase the risks of preferred shareholders relative to common shareholders. E. Preferred shares vary with respect to the rights and obligations of the issuing firm and of the investor in the preferred shares.

56. Which of the following is not true? A. Owners of preferred stock have a claim on the assets of a firm that is senior to the claim of common shareholders.  B. Preferred shares carry special rights.  C. The senior status and special rights may induce certain investors to purchase preferred shares of a firm, even though they would be unwilling to purchase common shares of the same firm.  D. The senior status and special rights decrease the risks of preferred shareholders relative to common shareholders. E. Jurisdictional laws dictate the rights and obligations of the issuing firm and of the investor in the preferred shares.

57. Which of the following is/are true? A. Preferred shares usually entitle their holders to dividends at a certain rate, which the firm must pay before it can pay dividends to common shareholders. B. Firms may sometimes postpone or omit preferred dividends. C. Most preferred shares have cumulative dividend rights. D. all of the aboveE. none of the above

58. Which of the following is/are not true? A. Callable preferred shares provide the issuer with the right to repurchase preferred shares at a specified price, B. If financing becomes available at a cost lower than the rate fixed for the preferred shares, the issuing firm can reduce its financing costs by issuing new securities and then exercising its option to reacquire the outstanding callable preferred shares at a fixed price. C. The call option is valuable to the issuing firm but makes the shares less attractive to potential owners of the shares.D. Other things equal, a firm will receive a smaller amount from issuing callable preferred shares than from issuing noncallable preferred  shares. E. none of the above

59. Which of the following is/are not true? A. Callable preferred shares provide the issuer with the right to repurchase preferred shares at a specified price, B. If financing becomes available at a cost lower than the rate fixed for the preferred shares, the issuing firm can reduce its financing costs by issuing new securities and then exercising its option to reacquire the outstanding callable preferred shares at a fixed price. C. The call option is valuable to the issuing firm but makes the shares less attractive to potential owners of the shares.D. Other things equal, a firm will receive a smaller amount from issuing callable preferred shares than from issuing noncallable preferred  shares. E. Callable preferred shares provide the issuer with the obligation to repurchase preferred shares at a specified price,

60. Which of the following is/are not true? A. Convertible preferred shares give the holder of preferred shares the right to convert the preferred shares into a specified number of common shares under certain specified conditions. B. Convertible preferred shares require the holder of preferred shares to convert the preferred shares into a specified number of common shares under certain specified conditions. C. Convertible preferred shares provide the security holders with the possibility of capital appreciation by converting the preferred shares into common shares if the market price of the common shares rises sufficiently. D. Convertible preferred shares provide the security holders with a relatively assured dividend. E. Convertible preferred shares provide the security holders with a claim that is senior to that of common shareholders.