business finance final
Statutes frequently require a corporation's name to end with_____?
"Corporation" or "incorporated" of an abbreviation thereof, or other indication of corporate status.
most dividends are in the form of?
cash
Dividends may be in the form of____?
cash, stock, or other property.
in the event a corporation is liquidated___?
common shareholders have rights to the company's assets only after creditors, preferred shareholders, and other debtholders are paid in full
Under certain circumstances, a court may issue a__?
decree dissolving a partnership
The death of a partner automatically___?
dissolves the partnership unless the partnership agreement provides otherwise.
A partnership can be dissolved by court decree due to_____?
established futility, or the likelihood that the partnership will never become profitable.
Securities Exchange Act of 1934
established the Securities and Exchange Commission (SEC)
Par value does not represent the market value of the stock; it is simply a ____?
face amount below which the corporation would normally not issue the stock.
stock option
gives an investor the right, but not the obligation, to buy or sell a stock at an agreed upon price and date.
A partner may be expelled who has engaged in conduct against the principles of___?
good faith and loyalty
A withdrawing partner___?
has liability for any loss sustained by the other partners because of the withdrawal.
The asset preference means___?
if a corporation were to liquidate, preferred shareholders must be paid before common.
The power of to make bylaws and regulations is an____?
incidental power that a corporation possesses.
A stock certificate
is a physical document or an electronic file that represents ownership in a corporation.
Treasury Stock
is stock that a corporation has issued, but later reacquired.
Under certain circumstances, such as the insanity of a partner, a court may____?
issue a decree dissolving a partnership.
A not-for-profit corporation usually does not
issue stock and does not distribute income or profits to members.
Once the board of directors declares a cash dividend___?
it becomes a legal liability of the company and cannot later be rescinded.
When a partnership is dissolved____?
its assets are first paid to the creditors of the firm.
Stock can also be issued without a par value, in which case it is referred to as
no-par stock
A close, or closely held, corporation is one that
operates for profit, but does not issue shares of ownership to the general public.
However, in a _______, the firm cannot be dissolved unless all partners agree.
partnership for a fixed period
If in addition to common stock, a corporation may also issue
preferred stock
a corporation cannot issue only____?
preferred stock
Partners who have advanced money to the firm or have incurred liabilities in its behalf are entitled to____?
reimbursement in the event the assets of the firm are distributed during dissolution
Common stockholders are at the bottom of the priority ladder in ___?
terms of ownership structure
The powers of municipal (public) corporations may be much greater than those of private corporations, such as
the ability to establish fees or taxes.
Securities and Exchange Commission (SEC)
the agency primarily responsible for enforcement of United States federal securities law.
Corporate bylaws are rules enacted by
the board of directors to govern a corporation's conduct.
Stock certificates include information such as
the number of shares owned, the date, an identification number, and usually a corporate seal and signatures.
domestic corporation
the state where it received its initial charter.
Common stock shareholders exercise control of the corporation because____?
they may vote for members of the company's board of directors.
True or false A corporation can be organized in any state the promoter chooses.
true
True or false A partnership can be dissolved at any time by the consent of the partners.
true
true or false A stock option may be exercised at any point during the stated period of time in the contract
true
true or false Corporations must issue common stock
true
true or false A stock certificate is not the actual stock, just evidence of ownership.
true
Preferred stock is so called because it usually has___?
two preference features
Securities Investor Protection Corporation (SIPC)
was created in 1970 as a non-profit, non-government, membership corporation, funded by member broker-dealers.
Securities Act of 1933
was the first federal legislation used to regulate the stock market.
The earnings preference means ___?
when a corporation pays a dividend, preferred shareholder must be paid before common.
par value
which is a per share amount assigned by the company and appears on stock certificates and in the corporation's articles of incorporation.
foreign corporation
A corporation doing business in a state in which is was not incorporated is referred to as a
alien corporation
A corporation that is incorporated in another country is known as an
promoter
A person who takes the initial steps to form a corporation is known as a
the act created a uniform set of rules to protect investors against fraud?
Securities Act of 1933
All brokerage firms that sell stocks or bonds to the investing public are required to be members of____?
Securities Investor Protection Corporation
_____ provides limited coverage to investors on their brokerage accounts if their brokerage firm becomes insolvent?
Securities Investor Protection Corporation
_____protects customers from unauthorized trading in, or theft from, their securities accounts?
Securities Investor Protection Corporation
the agency primarily responsible for enforcement of United States federal securities law?
Securities and Exchange Commission
dissolution of a partnership.
The change in the relation of the partners caused by any partner's ceasing to be associated in the carrying on of the business is called
The partnership agreement should contain
a clause providing for the expulsion of a partner, especially if the partnership has more than two partners.
dividend
a distribution of corporate earnings to stockholders. Dividends may be in the form of cash, stock, or other property.
Two preference earnings are?
a) a preference for earnings and (2) a preference to assets.
