What happens to preferred stock if a company fails to pay dividends?
Which of the following is an INCORRECT statement regarding common stock? A. Common stockholders have the right to elect corporate directors. B. Common stock has no preferences. C. The RMBCA encourages the concept of par value. Your answer is correct.D. Common stock does not have a fixed maturity date. E. Common stock is an equity security that represents the …
Which form of stock does most shareholders of a corporation own?
Which of the following statements about common stock is incorrect? Both C and D look incorrect. Please explain. a. Stockholders exercise control over the company by voting for board members. b. Common stockholders are the owners of for-profit corporations. c. The claim of shareholders on the cash flows of the firm is limited to the dividends they receive
What is the claim of shareholders on the cash flows of firms?
Question: Which of the following statements about common stock is incorrect? O A. The preemptive right gives current stockholders the right to purchase any new shares issued by the company. O B. Stockholders exercise control over the company by voting for board members. O C. Common stockholders are the owners of for-profit corporations. O D.
What is the difference between common stock and preferred stock?
Which of the following is an INCORRECT statement regarding common stock? A. The RMBCA encourages the concept of par value. B. Common stock has no preferences. C. Common stock is an equity security that represents the residual value of a corporation. D. Common stockholders have the right to elect corporate directors. E. Common stock does not have a fixed
What is the claim of shareholders on the cash flows of the firm?
d. The claim of shareholders on the cash flows of the firm is limited to the dividends that they receive , i.e., they have no claim on a business's residual earnings.
What are the factors that influence the interest rate on a loan?
Although many factors influence the interest rate set on a loan, the two most important are risk and inflation.
What is the liability of preferred stockholders?
Preferred stockholders have unlimited liability for corporate debts and other obligations.
How many shareholders are required for a corporation?
The corporation must have no more than 1,000 shareholders.
How long does a corporation's charter expire?
Corporations automatically expire twenty (20) years after the secretary of state's issuance of a certificate of incorporation unless the owners of the corporation expressly petition the secretary of state for a renewal of the corporate charter.
Can a corporation be in more than one state?
A corporation can be in incorporated in more than one state.
Do corporations have to do business in Delaware?
A corporation must do business in Delaware in order to obtain the benefits of Delaware corporation law.