True/False
Indicate whether the
statement is true or false.
|
|
|
1.
|
Shareholders are the “owners” of a
corporation.
|
|
|
2.
|
A shareholder can be a natural person or even
another corporation.
|
|
|
3.
|
In the event that a person dies without an heir,
the government may take over
title to the deceased person's stocks.
|
|
|
4.
|
A shareholder must have a printed stock certificate
before he or she can claim
ownership in a corporation.
|
|
|
5.
|
Shareholder rights are normally set out in the
corporate bylaws.
|
|
|
6.
|
Proxy voting allows individuals to transfer their
rights to a single individual.
|
|
|
7.
|
Corporate presidents can act as agents for the
corporation.
|
|
|
8.
|
Corporate secretaries are responsible for keeping
the books and monitoring
the finances of a corporation.
|
|
|
9.
|
The most common way to become a shareholder is by
purchasing shares.
|
|
|
10.
|
The documents that confer shareholder rights are in
the articles of
incorporation, the bylaws, and any shareholder agreements.
|
Multiple Choice
Identify the
choice that best completes the statement or answers the question.
|
|
|
11.
|
All of the following rights are conferred on
shareholders by stock ownership
except:
a. | The right to vote on management
issues | b. | The right to hire and fire
employees | c. | The right to a percentage of corporate
earnings | d. | The right to corporate assets if the company should be
dissolved |
|
|
|
12.
|
An agreement between shareholders to vote in a
certain way.
a. | Voting proxy | b. | Voting trust | c. | Voting
separation | d. | Voting
rescission |
|
|
|
13.
|
A temporary transfer of voting rights to another
person or voting trust.
a. | Elimination | b. | Voting agreement | c. | Proxy | d. | None of the
above |
|
|
|
14.
|
These individuals are responsible for
administrative issues arising in the
corporate business. They also control the business and
delegate duties to
officers to put policy into practice.
a. | Shareholders | b. | Officers | c. | Directors | d. | Managers |
|
|
|
15.
|
A person, such as a guardian, who has an obligation
to act with honesty, fair
dealing, and trust for another.
a. | Fiduciary | b. | Honoree | c. | Trustee | d. | None of the
above |
|
|
|
16.
|
The persons who are empowered to carry out specific
activities for the
corporation; they handle the day-to-day actions on behalf of the
corporation.
a. | Officers | b. | Directors | c. | Shareholders | d. | Secretaries |
|
|
|
17.
|
The person responsible for maintaining records of
the corporation’s finances.
a. | Treasurer | b. | Vice president | c. | Accountant | d. | President |
|
|
|
18.
|
When a corporate officer uses secret information to
personally enrich himself
or others, this is referred to as:
a. | Insider trading | b. | Separate accounting | c. | Joint and several
liability | d. | Mobilization |
|
|
|
19.
|
Printed documents that indicate share
ownership.
a. | Stock licenses | b. | Stock bonds | c. | Stock
certificates | d. | All of the
above |
|
|
|
20.
|
A corporate officer position that usually involves
specific delegation by the
president.
a. | Executive committee | b. | Vice president | c. | Corporate
counsel | d. | Delegation |
|