Exam (elaborations)
BUL 5810 – CORPORATIONS EXAM with Questions and 100% Correct Answers
- Course
- Institution
BUL 5810 – CORPORATIONS EXAM with Questions and 100% Correct Answers
[Show more]
Seller
Follow
Content preview
BUL 5810 – CORPORATIONSEXAM with Questions and 100%
Correct Answers
The board of directors cannot declare dividends when the corporation: - Answer
is insolvent
A corporation's proportional distribution of additional shares of the corporation's
capital stock to its shareholders is a: - Answer stock or share dividend
What are the principal sources for corporate financing? - Answer Debt
Equity Investment Securities
Retained Earnings
The most customary type of dividend is a: - Answer cash dividend
Which of the following determines when to declare dividends and in what amount? -
Answer Board of Directors
, All states impose a "cash flow test" on the payment of dividends or other
distributions. The "cash flow test" is also known as the: - Answer Equity Solvency Test
State laws that regulate the issuance and sale of securities are known as: - Answer
Blue sky Laws
The Ajax Corporation issues bonds that pay a minimum of 6% interest but that can
pay more if corporate earnings reach certain specified levels. The holder of the bond
may exchange it for stock of the corporation. This bond would be a: - Answer
convertible bond
Allen owns 200 of the 1,000 shares outstanding of General Myopics. GM plans to issue
1,000 new shares. If Allen has preemptive rights, he may buy: - Answer 200 shares at the
new stock price
Yukon Corporation purchases 1,000 shares of its own stock from Jones at a price of
$50 a share. These shares, which are now issued but not outstanding, are known as: -
Answer Treasury Shares
The directors of Premier Glass Company authorize the issuance of 100 shares of
common stock for $25 per share to Justin for property the directors value at $2,500.
The valuation: - Answer under the Revised Act, depends on the directors' determination
of the consideration's "adequacy"
If The Raintree Company has accumulated earnings each year but the directors have
not declared dividends for five years, the shareholders may: - Answer ask for an
injunction requiring a dividend to be declared
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KenAli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now