Shareholders of a Corporation

question 68

Multiple Choice

Shareholders of a corporation:

• A) receive one vote for each share of stock they own.
• B) have unlimited liability.
• C) have mutual agency.
• D) receive dividends from the corporation without having to pay tax on the distribution.

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Definitions:

Depositor's Account

A financial account held at a bank or financial institution, into which a depositor can deposit and withdraw money.

Debit Memorandum

A document issued by a purchaser and sent to a seller indicating the amount and reasons for deductions in the payment or an increase in the purchaser's debt.

Bank Service Charge

A fee charged by a bank for the maintenance of an account or for processing transactions.

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company's bank statement with the amount shown in the company's own records.