purdue mgmt 200 ch 10 review exam
questions and answers
Shareholders' equity is another common term for _____ equity -
correct answer ✅stockholder's
The amount of money paid into a company by its owners is referred
to as: -
correct answer ✅invested captial
When a business incorporates, it must file its ______ with the state
in which it incorporates. -
correct answer ✅articles of incorporation
True or false: The board of directors is responsible for establishing
corporate policies. -
correct answer ✅true
Which of the following are included in the rights of common
stockholders? -
correct answer ✅right to vote on certain matters
Another common term for stockholders' equity is: -
correct answer ✅stockholder's equity
,purdue mgmt 200 ch 10 review exam
questions and answers
The advantages to the corporate form of business include -
correct answer ✅transferability of ownership
ease of raising capitl
______ capital is the amount of money paid into a company by its
owners. -
correct answer ✅paid-in
In a corporation, the stockholders' potential loss is -
correct answer ✅limited to the amount of the investment.
A corporate charter: -
correct answer ✅1. specifies the shares of stock to be
issued.
2. names the board of directors.
3.describes the business activities.
Additional taxes and more paperwork are the two primary
disadvantages of this business form: -
correct answer ✅corporation
, purdue mgmt 200 ch 10 review exam
questions and answers
Which of the following are included in the duties of the board of
directors? -
correct answer ✅Appoint officers to manage the
corporation.
Establish corporate policies.
A corporation is owned by its _______ . (Enter one word per blank)
-
correct answer ✅shareholders
The rights of common stockholders typically include which of the
following? -
correct answer ✅1. Right to distribution of assets in
liquidation.
2. Right to dividends when declared.
3. Right to vote for corporate directors.
The number of shares authorized is set forth in the company's: -
correct answer ✅articles of corporation
The number of shares authorized is set forth in the company's: -
correct answer ✅articles of corporation
questions and answers
Shareholders' equity is another common term for _____ equity -
correct answer ✅stockholder's
The amount of money paid into a company by its owners is referred
to as: -
correct answer ✅invested captial
When a business incorporates, it must file its ______ with the state
in which it incorporates. -
correct answer ✅articles of incorporation
True or false: The board of directors is responsible for establishing
corporate policies. -
correct answer ✅true
Which of the following are included in the rights of common
stockholders? -
correct answer ✅right to vote on certain matters
Another common term for stockholders' equity is: -
correct answer ✅stockholder's equity
,purdue mgmt 200 ch 10 review exam
questions and answers
The advantages to the corporate form of business include -
correct answer ✅transferability of ownership
ease of raising capitl
______ capital is the amount of money paid into a company by its
owners. -
correct answer ✅paid-in
In a corporation, the stockholders' potential loss is -
correct answer ✅limited to the amount of the investment.
A corporate charter: -
correct answer ✅1. specifies the shares of stock to be
issued.
2. names the board of directors.
3.describes the business activities.
Additional taxes and more paperwork are the two primary
disadvantages of this business form: -
correct answer ✅corporation
, purdue mgmt 200 ch 10 review exam
questions and answers
Which of the following are included in the duties of the board of
directors? -
correct answer ✅Appoint officers to manage the
corporation.
Establish corporate policies.
A corporation is owned by its _______ . (Enter one word per blank)
-
correct answer ✅shareholders
The rights of common stockholders typically include which of the
following? -
correct answer ✅1. Right to distribution of assets in
liquidation.
2. Right to dividends when declared.
3. Right to vote for corporate directors.
The number of shares authorized is set forth in the company's: -
correct answer ✅articles of corporation
The number of shares authorized is set forth in the company's: -
correct answer ✅articles of corporation
