Which of the following is not a right of each common share?
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16. Because of US "Securities Offering Reform" can take advantage of a special streamlined "shelf registration" process that provides for automatic effectiveness of a registration statement upon filing with the SEC (i.e., no SEC review). Show Chapter 18: Dividend PolicyJust click on the button next to each answer and you'll get immediate feedback.Note: Your browser must support JavaScript in order to use this quiz. 1. Retained earnings arean indication of a company's liquidity. the same as cash in the bank. not important when determining dividends. the cumulative earnings of the company after dividends. 2. Which of the following is an argument for the relevance of dividends?Informational content. Reduction of uncertainty. Some investors' preference for current income. All of the above. 3. All of the following are true of stock splits EXCEPT:market price per share is reduced after the split. the number of outstanding shares is increased. retained earnings are changed. proportional ownership is unchanged. 4. If Ian O'Connor Enterprises, Inc., repurchased 50 percent of its outstanding common stock from the open (secondary) market, the result would bea decline in EPS. an increase in cash. a decrease in total assets. an increase in the number of stockholders. 5. On May 7, Melbourne Mining declared a $.50-per-share quarterly dividend payable June 28 to stockholders of record on Friday, June 7. What is the latest date by which you could purchase the stock and still get the recently declared dividend?June 3 June 4 June 5 June 6 6. An offer by a firm to repurchase some of its own shares is known asa DRIP. a self-tender offer. a reverse split. 7. If an individual stockholder reinvests dividends under a company's dividend reinvestment plan, the reinvested dividends arenot taxable to the shareholder. taxable to the shareholder. 8. The dividend-payout ratio is equal tothe dividend yield plus the capital gains yield. dividends per share divided by earnings per share. dividends per share divided by par value per share. dividends per share divided by current price per share.
Multiple-Choice Quiz questions are Copyright © by Pearson Education Limited. Used by permission. All rights reserved. Previous Quiz |Back to Main Index | Next QuizPersons who take the procedural steps to set up a company and who make business preparations for the company are known as: a) Directors. b) Shareholders. c) Registrars. d) Promoters. Question 2Joe and Jamel wish to form a new company, which of the following documents must be lodged with the Registrar of Companies? a) 1, 2 and 4 b) 1,2,3, and 4 c) 1,3, and 4 d) 2 and 4 Question 3Under the Companies Act 2006 the document that states the subscribers wish to form a company and have agreed to become members of that company is called: a) The Company Articles. b) The Statement of Compliance. c) The Memorandum of Association. d) The Company Guarantee. Question 4What is the internet registry for '.uk' domain names? a) Companies House. b) Nominet UK. c) Dot. Com UK. d) Internet Registration UK. Question 5Companies set up under the provisions of the Companies Act 2006 have one major constitutional document called: a) The Company Constitution. b) The Memorandum of Association. c) The Articles of Association. d) The Object Clause. Question 6Will a court permit an alteration of a Company's articles to be enforced if the alteration is to give the company the power to expel shareholders? a) Yes, there are no restrictions on expelling shareholders. b) Yes, provided there is a good reason and it is for the benefit of the company as a whole. c) No, the Company's Act 2006 does not permit a shareholder to be expelled from a company. d) No, the common law does not permit a shareholder to be expelled from a company. Question 7Which one of the following statements relating to debentures is incorrect? a) Debenture stock is transferable. b) A company may not purchase its own debentures. c) A debenture holder is a creditor of the company. d) A debenture is the written document issued by a company setting out the terms of a loan. Question 8Which one of the following is not a right of a shareholder? a) To receive a dividend declared by the company b) To attend and vote a meetings c) To receive the company's accounts d) To manage company affairs Question 9Shares issues without any special rights attached to them are known as: a) Ordinary shares b) Preference shares c) Treasury shares d) Capital shares Question 10What are redeemable shares? a) Shares that cannot be transferred on the stock market. b) Shares kept by a company to be sold at a later date. c) Shares which when issued carry a right by the company to buy them back. d) Shares that carry rights in preference to other shares.
 About the bookFind out more, read a sample chapter, or order an inspection copy if you are a lecturer, from the Higher Education website Which of the following is the right of a common shareholder?Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.
What are the 4 types of shares?What are the different types of shares in a limited company?. Ordinary shares.. Non-voting shares.. Preference shares.. Redeemable shares.. Which of the following is the right of a common shareholder quizlet?The common shareholder does have the right to vote, receive a dividend, and to sell his shares.
Does common share have voting rights?A holder of common stocks will receive voting rights, which increases proportionally with the more shares the holder owns. Those who purchase common shares try to sell the share at a higher price than when they bought it in order to turn a profit. Sometimes, common shares will come with dividends that are paid out.
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