Match the Terms with the Definitions

question 33

Multiple Choice

Match the terms with the definitions.
-Stock that gives its owner the right to vote at stockholders' meeting, share in earnings distributions, purchase additional shares if more shares are issued by the corporation, and share in the assets if the corporation liquidates.

• A)preemptive right
• B)participating preferred stock
• C)par value
• D)capital stock
• E)organization costs
• F)charter
• G)common stock
• H)nonparticipating preferred stock
• I)noncumulative preferred stock
• J)no-par stock
• K)incorporators
• L)issued stock
• M)market value
• N)mutual agency

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Definitions:

Sales Forecast

A sales forecast is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance.

Financial Forecasting

The process of estimating or predicting how a business will perform in the future through its financial statements.

FA/Sales Ratio

The Fixed Asset to Sales Ratio compares a company's total amount of fixed assets to its sales revenue, indicating how efficiently the company uses its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits for a specific period.