Assume That a Firm Had Shareholders' Equity on the Balance

question 10

Multiple Choice

Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,200 at the end of 2005. During 2006 the firm earns net income of $900, pays dividends to shareholders of $400, and issues new stock to raise $250 of capital. The book value of shareholders equity at the end of 2006 is:

• A) $2,750
• B) $250
• C) $1,450
• D) $1,950

Grasp the legal consequences and responsibilities of corporations that undergo fundamental changes such as mergers, consolidations, and dissolutions.

Recognize the rights and remedies available to dissenting shareholders in mergers and other fundamental corporate changes.

Understand the legal liabilities of corporations in the context of product liability and asset acquisitions.

Understand the symbolic interactionist view of the mass media and its impact on adolescent life satisfaction.

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Definitions:

Peremptory Challenges

In the course of picking a jury, lawyers have the authority to turn down a predetermined number of potential jurors, no explanation required.

Challenges for Cause

A method during jury selection that allows attorneys to exclude a potential juror for a specific, articulated reason suggesting that the juror is incapable of delivering an impartial verdict.

Certified Class

In a legal context, a group of individuals certified by a court to act collectively in a class action lawsuit.

Class Action Lawsuit

A legal action filed by one or more plaintiffs on behalf of a larger group who are affected by the same issue, seeking collective compensation or remedy.