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31 cards
1How are corporations financed?
2May a business issue stock before it formally incorporates?
3Promoters were in the process of incorporating their new business. The corporation would own and manage a music venue and surrounding restaurants a...
4May a corporate entity issue new stock or repurchase its stock?
5What are the two main types of capital stock?
6Typically, does a share of preferred stock entitle the shareholder to receive dividends?
7Are corporations limited to issuing only common stock and preferred stock?
8What is treasury stock?
9May a corporation issue stock in exchange for something other than cash?
10What is par value?
11If a corporation is issuing new stock, may it set the value of that stock below par value?
12What is watered stock?
13A board of directors was interested in issuing additional shares of a corporation. A local investor was interested in acquiring 1,000 shares for $5...
14A corporation wished to hire a famous artist to paint a number of murals in its new offices. The artist was willing to paint the murals for $50,000...
15A corporation was incorporated in a par-value state and set a par value for its stock. When first incorporated, the board of directors set par valu...
16What is a preemptive right?
17What is the purpose of preemptive rights?
18If a shareholder has a preemptive right to buy additional shares of a corporation before new shares are offered to the public, may the shareholder ...
19The board of directors of a corporation had continuing, significant disagreements with a group of disgruntled shareholders. The corporation had 100...
20When a corporation was initially formed, its articles of incorporation gave its shareholders preemptive rights. However, the corporation’s board la...
21What is a corporate distribution?
22What are dividends?
23Must a corporate distribution always be in the form of a dividend?
24May a corporation make distributions to its shareholders if, after the distribution, the corporation’s total assets will be less than its total lia...
25A corporation had been struggling to pay its bills and had defaulted on several already. To try to signal strength to the market, the corporation e...
26Generally, may a corporation may reacquire its own previously issued stock?
27What are shareholder appraisal rights?
28What types of corporate actions may trigger a shareholder’s ability to exercise an appraisal right?
29If a shareholder exercises an appraisal right, does the shareholder received a predetermined value for the shareholder’s shares?
30What two actions must a shareholder take to exercise her appraisal rights?
31Almost all of a corporation’s shareholders voted to change the corporation’s state of incorporation from Delaware to Nevada. A few shareholders vot...
All flashcards
31 cards