BUS 212 WEEK 4 QUIZ
The stockholders of a corporation have unlimited liability.
False
Which of the following is a disadvantage of the corporate business form?
Government regulation
If a corporation issues 1,000 shares of $3 par common stock for $7 a share, how
much is the legal capital?
$3,000
For what reason might a company acquire treasury stock?
To reissue the shares to officers and employees under bonus and stock
compensation plans
Which one of the following is not a right of preferred stockholders?
Priority voting rights
If everything else is held constant, what will cause earnings per share to increase?
The purchase of treasury stock
Which of the following does not increase the return on common stockholders’
equity?
An increase in the company’s stock price
When a stock dividend is declared, which of the following accounts is debited?
The stockholders of a corporation have unlimited liability.
False
Which of the following is a disadvantage of the corporate business form?
Government regulation
If a corporation issues 1,000 shares of $3 par common stock for $7 a share, how
much is the legal capital?
$3,000
For what reason might a company acquire treasury stock?
To reissue the shares to officers and employees under bonus and stock
compensation plans
Which one of the following is not a right of preferred stockholders?
Priority voting rights
If everything else is held constant, what will cause earnings per share to increase?
The purchase of treasury stock
Which of the following does not increase the return on common stockholders’
equity?
An increase in the company’s stock price
When a stock dividend is declared, which of the following accounts is debited?
