What Right Does a Share Confer on Its Owner in Regard

question 51

Multiple Choice

What right does a share confer on its owner in regard to an interest in the corporation?

• A) Right to participate in residual assets of the corporation upon dissolution.
• B) Right to participate in earnings of the corporation.
• C) Right to participate in control.
• D) All of these are conferred.

---

Definitions:

Accounts Receivable

Sums due to a company from its clients for products or services that have been supplied or utilized but remain unpaid.

Net Income

The residual income of a company after total revenue has been diminished by all costs and taxes.

Cash Flows

The net amount of cash being transferred into and out of a business, especially considered important for assessing liquidity, flexibility, and overall financial health.

Indirect Method

An approach to preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash from operating activities.