Various Laws and Contracts Govern the Rights and Obligations of a Shareholder

question 140

Multiple Choice

Various laws and contracts govern the rights and obligations of a shareholder. Which of the following istrue?

• A)Each type of capital stock has its own provisions on voting matters, only.
• B)Each type of capital stock has its own provisions on sharing in earnings matters, only.
• C)Each type of capital stock has its own provisions on distributing assets generated by earnings matters, only.
• D)Each type of capital stock has its own provisions on sharing in assets in case of dissolution of the firm.matters, only.
• E)Each type of capital stock has its own provisions on such matters as voting, sharing in earnings, distributing assets generated by earnings, and sharing in assets in case of dissolution of the firm..

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Definitions:

Accumulated Depreciation

The total amount of depreciation for a fixed asset that has been charged to expense since that asset was acquired and put into use.

Fair Market Value

The estimated price at which an asset would change hands between a willing buyer and a willing seller, with both parties having reasonable knowledge of all relevant facts and neither being compelled to buy or sell.

Accounts Payable

Accounts payable are liabilities or money owed by a company to its creditors for goods and services received.

Uniform Partnership Act

Laws enacted in most states that govern how a partnership is formed, operated, and liquidated.