Match the Terms with the Definitions Below

question 76

Short Answer

Match the terms with the definitions below.
Terms
A. Common shares
B. Preferred shares
C. Preferred shares, noncumulative
D. Preferred shares, cumulative
E. None of the above Definitions
1. Shares that have been issued, repurchased, and are held by the corporation.
____ 2. Authorized but unissued shares.
____ 3. Shares that are limited to a specified dividend rate per year.
____ 4. The basic issue of shares; the residual equity.
____ 5. Shares on which dividends in arrears must be paid before current dividends can be paid.
____ 6. Shares with specified differences from the basic shares.

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Definitions:

Mutual Fund

An investment program funded by shareholders that trades in diversified holdings and is professionally managed.

C Corporations

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Unlimited Life

Refers to corporations or legal entities that continue to exist indefinitely until dissolution, unlike natural persons who have a finite lifespan.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government.