Which of the Following Is Not a Characteristic of Corporate

question 132

Multiple Choice

Which of the following is not a characteristic of corporate ownership?

• A)Stockholders have no liability for the debts of the corporation.
• B)Ownership interests are freely transferable.
• C)Shares of stock can be purchased in small increments.
• D)Corporate earnings are distributed as interest payments.

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Definitions:

Unrealized Holding

A gain or loss on investments that has occurred but has not yet been sold or cashed in, hence not yet realized as an income or loss.

Trading To Available-For-Sale

The process of reclassifying a security from being actively traded to being held with the intention not to sell in the near term.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all non-owner changes in equity such as unrealized gains and losses.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.