527 test material no30 rating name date year and

527

Test Material No.30 Rating
Name Date
Year and Section Professor
MULTIPLE CHOICE – Theory and Problems
Instructions: Encircle the letter of the best answer. Show supporting computations in good form
in a separate worksheet.
1. Which of the following would not be considered a characteristic of a corporation?
a. Separate legal entity
b. Limited liability of shareholders
c. Mutual agency
d. Both a and c
2. Which of the following statements describing a corporation is not true?
3. The per value of a share capital
4. Which of the following is NOT one of the basic rights of a shareholder?
5. The ownership of share capital entitles ordinary shareholders to all of the following rights
EXCEPT:
a. Voting right
b. right to receive a proportionate share of assets in corporate liquidation
c. right to receive guaranteed dividends
d. preemptive rights
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6. Which of the following statements about preference share capital is NOT true?
7. The maximum number of shares of stocks that the government gives a corporation
permission to issue is the