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:

Brand Loyal

The tendency of consumers to continuously purchase one brand's products over the competition.

Environmental Scanning

is the process of systematically gathering information about the external environment to identify potential threats and opportunities.

Competitive Intelligence

The process of gathering, analyzing, and using information about competitors, market trends, and the business environment to support strategic decision making.