Common Shares

question 39

Multiple Choice

Common shares:

• A) Make shareholders liable for acts of the corporation because they share in ownership.
• B) Are usually redeemable.
• C) Always represent total contributed capital.
• D) Allow shareholders to bind the corporation to contracts because they share in ownership.
• E) Represent residual equity in a corporation.

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Definitions:

Major Premise

In a categorical syllogism, the premise in which the major term appears.

Syllogism

A form of deductive reasoning that consists of two premises followed by a conclusion, based on the relationship between the premises.

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands which females use to nourish their young.

Minor Term

In logic, specifically in syllogisms, the term that is the subject of the conclusion.