Which of the Following Must Be Present with Respect to Each

question 59

Multiple Choice

Which of the following must be present with respect to each class of shares issued by a corporate entity?

• A) the right to receive dividends, vote, and share in proceeds on dissolution
• B) the right to receive preference shares, vote, and participate in winding up
• C) the right to vote, right to preference on dissolution, and the right to share dividends
• D) the right to vote, receive remuneration, and share in proceeds on dissolution

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Definitions:

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare.

Specific Excise Taxes

Taxes imposed on a particular good or service, charged by quantity rather than value, such as per gallon or per pack.

Consumer Goods

Products that are sold directly to consumers for their personal or household use.

Sales Taxes

Levies that are imposed on the sale of goods and services, which are typically calculated as a percentage of the retail sales price.