Learning Objective 8-1
1) Which stock offers shareholders preference in receiving dividends?
A) common stock
B) preferred stock
C) treasury stock
D) callable stock
2) Preferred stock offers shareholders the right to ________.
A) receive dividends after the common shareholders receive any dividends
B) receive, in the event of bankruptcy, a share of the assets before common shareholders
C) pre-emptive rights
D) voting rights
3) Contributed capital includes ________.
A) only capital stock
B) only additional paid-in capital
C) both capital stock and retained earnings
D) both capital stock and additional paid-in capital
4) Paid-in capital includes ________
A) capital stock and additional paid-in capital
B) capital stock and retained earnings
C) additional paid-in capital and retained earnings
D) additional paid-in capital and treasury stock
5) In exchange for stock, corporations may receive ________.
A) earnings
B) cash or other assets
C) income
D) treasury stock
6) The number of shares of stock a corporation may issue when a corporation is formed is called ________ shares.
A) authorized
B) issued
C) outstanding
D) treasury
7) ________ is the stock sold to the public.
A) Authorized stock
B) Issued stock
C) Outstanding stock
D) Treasury stock
8) Stock in the hands of shareholders is called ________ stock.
A) authorized
B) par value
C) outstanding
D) treasury
9) Stock that has been sold and then repurchased by the issuing corporation is called ________ stock.
A) authorized
B) issued
C) outstanding
D) treasury
10) 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 earning
C) acquire more shares when a corporation issues more stock
D) receive dividends automatically each year