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Rights of common shareholders

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1. The net assets of a corporation equal to:

A. Contributed capital.
B. Retained earnings.
C. Shareholders' equity.
D. None of the above.

2. The corporate charter sometimes is known as (a):

A. Articles of incorporation.
B. Statement of organization.
C. By-laws.
D. Registration statement.

3. The preemptive right refers to the shareholder's right to:

A. Maintain a proportional ownership interest in the corporation.
B. Vote for members of the board of directors.
C. Receive a share of dividends.
D. Share in profits proportionally with all other stockholders.

4. Common shareholders usually have all of the following rights except:

A. To share in the profits.
B. To share in assets upon liquidation.
C. To elect a board of directors.
D. To participate in the day-to-day operations.

5. The par value of shares issued is normally recorded in the:

A. Paid-in capital in excess of par account.
B. Common stock account.
C. Retained earnings account.
D. Appropriated retained earnings account.

6. Preferred shares that are participating may:

A. Vote for the board of directors.
B. Be exchanged for common stock.
C. Receive extra cash during corporate liquidation.
D. Receive additional dividends beyond the stated amount.

7. Treasury shares are most often reported as:

A. A reduction of total shareholders' equity.
B. A reduction of total paid-in capital.
C. A reduction to retained earnings.
D. An expense on the income statement.

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1. The net assets of a corporation equal to:

D. None of the above.

2. The corporate charter sometimes is known as (a):

A. Articles of incorporation.

corporate charter

3. The ...

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