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BUL 5810 – CORPORATIONS EXAM with Questions and 100% Correct Answers
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BUL 5810 – CORPORATIONS EXAM with Questions and 100% Correct Answers
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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
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