Jason Contracts with Golf Carts Unlimited,Inc

question 18

Multiple Choice

Jason contracts with Golf Carts Unlimited,Inc. to buy five golf carts. The contract lists the five carts as GC001,GC002,GC003,GC004,GC005. Identification

• A)requires that Jason verify his identity to take possession of the carts.
• B)has taken place.
• C)cannot take place until the contract is reviewed by a court.
• D)will take place only when Jason pays for the golf carts.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.

Capital Stock

The total amount of shares that a corporation is authorized to issue as stated in its articles of incorporation.

Dividend

A portion of a company's earnings distributed to its shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid, and must be paid out before dividends to common stockholders.