Ch 13 Practice quiz

Ch 13 Practice quiz - Review Assessment: Chapter 13:...

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Review Assessment: Chapter 13: True/False Quiz Question 1 1 out of 1 points The stockholders of a corporation have unlimited liability. Correct Answer: False Feedback : Correct. The stockholders of a corporation have limited liability. In other words, the loss a stockholder may suffer is limited to the amount invested. Question 2 1 out of 1 points A corporation may acquire, own, and dispose of property in its corporate name. Correct Answer: True Question 3 0 out of 1 points The two main sources of stockholders' equity are paid-in capital and long-term debt. Correct Answer: False
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Feedback : Incorrect. The two main sources of stockholders' equity are paid-in capital and retained earnings, not long-term debt. Question 4 0 out of 1 points The common stockholders have a greater chance of receiving regular dividends than do preferred stockholders. Correct Answer: False Feedback : Incorrect. The preferred stockholders have a greater chance of receiving regular dividends than do common stockholders, not vice versa. Question 5 1 out of 1 points The board of directors has the sole authority to distribute earnings to the stockholders in the form of dividends. Correct Answer:
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This note was uploaded on 06/20/2011 for the course ACT ACT 2292 taught by Professor Amyhulsey during the Fall '09 term at Troy.

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Ch 13 Practice quiz - Review Assessment: Chapter 13:...

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