The Ownership of Ordinary Share in a Corporation Usually Carries

question 12

Multiple Choice

The ownership of ordinary share in a corporation usually carries the following rights:

• A) To vote for directors.
• B) To declare dividends.
• C) To share in a distribution of assets if the corporation is to be liquidated.
• D) Both a and c.

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Definitions:

Cash Ratio

A liquidity metric that measures a company’s ability to cover its short-term liabilities with its cash and cash equivalents.

Current Ratio

A measure of a business's capability to settle short-term debts, calculated as the ratio of current assets to current liabilities.

Cash Equivalents

Liquid assets that can be quickly turned into a specific amount of cash and have initial maturity times of no more than three months.

Cash Ratio

A financial ratio indicating how well a company can cover its short-term obligations using its liquid assets.