Which of the Following Statements About Issuing Common Shares Is

question 27

Multiple Choice

Which of the following statements about issuing common shares is true?

• A) The total amount received is referred to as legal capital and it may be paid out as dividends once the company is profitable.
• B) The total amount received is referred to as legal capital and it cannot be paid out as dividends.
• C) All classes of common shares pay identical dividends.
• D) All classes of common shares have the same voting rights.

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Definitions:

Lessee

A tenant.

Re-entry

The act of a landlord to move into possession of leased property.

Re-enter

The act of going back into a place or area that one has previously left.

Payment of Rent

The periodic payment made by a tenant to a landlord in exchange for the use of property, as specified in a lease agreement.