Stock in a Company Is

question 106

Multiple Choice

Stock in a company is:

• A)a share of ownership of the company.
• B)an IOU that pays interest.
• C)a portion of a firm's profits paid to shareholders.
• D)part of private savings.

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Definitions:

Voting Rights

The entitlement of individuals to participate in the election of government officials and to have their vote counted.

Pre-incorporation Contracts

Agreements entered into on behalf of a corporation that has not yet been legally formed, often leading to questions about enforceability.

Ratification

When the majority agrees with the terms of a collective bargain; when a principal confirms a contract entered into by his agent.

Promoters

Individuals or organizations that undertake the founding and organization of a corporation by arranging for its financing, registration, and public offering.