Once a Stock Is Repurchased and "Held in the Treasury

question 94

Multiple Choice

Once a stock is repurchased and "held in the treasury,"

• A) the stock is considered as issued stock
• B) it is not entitled to be issued again
• C) it is not entitled to voting rights or dividends
• D) dividends issued may accumulate in a sub-treasury account

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Definitions:

Legal Person

An individual or organization that has legal rights and obligations, capable of entering into legal contracts, and can sue or be sued.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

Hold Title

The legal right of owning a piece of property, whether it's real estate or a vehicle, indicated by a document called a title.

Joint Stock Company

A hybrid form of business organization that combines characteristics of a corporation and a partnership. Usually, a joint stock company is regarded as a partnership for tax and other legal purposes.