Which of the Following Represents One of the Basic Rights

question 8

Multiple Choice

Which of the following represents one of the basic rights of shareholders?

• A)Shareholders may authorise a business contract on behalf of the company.
• B)Shareholders can maintain their proportionate ownership if the company issues new shares.
• C)Shareholders may sell their shares back to the company if they wish.
• D)Shareholders may determine at what price the company issues shares.

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Definitions:

Taxable Income

The amount of income that is subject to income tax after all deductions and exemptions.

Corporate Income Tax Schedule

A chart or plan detailing the rates at which corporate income is taxed by the government at different income levels.

Tax Liability

The total amount of tax owed to governmental authorities, based on income, property value, transactions, or other taxable events.

Earnings Before Interest And Taxes (EBIT)

A measure of a firm’s performance without regard to how it is financed.