Question 1

If a share certificate is lost, destroyed, or stolen, the ownership of the shareholder is destroyed.

Accepted Answer

A) True 
 B)False

Question 2

Membership in a corporation is based on the ownership of one or more shares of stock of the corporation.

Accepted Answer

A) True 
 B)False

Question 3

A shareholder may make an absolute transfer of stock or may transfer it merely as collateral to secure the payment of a debt.

Accepted Answer

A) True 
 B)False

Question 4

Dividends are payable in:

Accepted Answer

A)  money.
B)  products manufactured by the corporation.
C)  shares of other corporations held by the corporation.
D)  all of the above.

Question 5

Under the RMBCA, a preincorporation subscription agreement is irrevocable for six (6) months unless the subscription agreement provides a longer or shorter period, or all of the subscribers agree to revocation.

Accepted Answer

A) True 
 B)False

Question 6

Shares can exist for only as long as the shareholder is alive.

Accepted Answer

A) True 
 B)False

Question 7

Preferred stock cannot have priority over common stock with respect to dividends.

Accepted Answer

A) True 
 B)False

Question 8

If a corporate stock has a par value, the person subscribing to the stock and acquiring it from the corporation must pay that par value amount.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is not true of common stock?

Accepted Answer

A)  It is ordinary stock that has no preferences.
B)  It entitles the holder to share in corporate profits in the form of dividends.
C)  It entitles the holder to participate in the distribution of capital upon dissolution.
D)  It is ordinarily nonvoting.

Question 10

Shareholders exercise direct control over their corporation.

Accepted Answer

A) True 
 B)False

Question 11

Each shareholder owns a proportionate share of the property of the corporation.

Accepted Answer

A) True 
 B)False

Question 12

No writing is required for a contract by which a broker agrees with a customer to buy or sell securities for the customer.

Accepted Answer

A) True 
 B)False

Question 13

A shareholder does not:

Accepted Answer

A)  qualify as a member of the corporation.
B)  own any specific property of the corporation.
C)  have a fractional interest in the total property of the corporation.
D)  all of the above.

Exam 45: Shareholder Rights in Corporations

Shares can exist for only as long as the shareholder is alive.

Correct Answer
verified

Dividends are payable in:

Correct Answer
verified

Each shareholder owns a proportionate share of the property of the corporation.

Correct Answer
verified

If a corporate stock has a par value, the person subscribing to the stock and acquiring it from the corporation must pay that par value amount.

Correct Answer
verified

If a share certificate is lost, destroyed, or stolen, the ownership of the shareholder is destroyed.

Correct Answer
verified

Membership in a corporation is based on the ownership of one or more shares of stock of the corporation.

Correct Answer
verified

Shareholders exercise direct control over their corporation.

Correct Answer
verified

Under the RMBCA, a preincorporation subscription agreement is irrevocable for six (6) months unless the subscription agreement provides a longer or shorter period, or all of the subscribers agree to revocation.

Correct Answer
verified

No writing is required for a contract by which a broker agrees with a customer to buy or sell securities for the customer.

Correct Answer
verified

A shareholder may make an absolute transfer of stock or may transfer it merely as collateral to secure the payment of a debt.

Correct Answer
verified

A shareholder does not:

Correct Answer
verified

Which of the following statements is not true of common stock?

Correct Answer
verified

Preferred stock cannot have priority over common stock with respect to dividends.

Correct Answer
verified

Exam 45: Shareholder Rights in Corporations

Shares can exist for only as long as the shareholder is alive.

Correct AnswerverifiedShow Answer

Dividends are payable in:

Correct AnswerverifiedShow Answer

Each shareholder owns a proportionate share of the property of the corporation.

Correct AnswerverifiedShow Answer

If a corporate stock has a par value, the person subscribing to the stock and acquiring it from the corporation must pay that par value amount.

Correct AnswerverifiedShow Answer

If a share certificate is lost, destroyed, or stolen, the ownership of the shareholder is destroyed.

Correct AnswerverifiedShow Answer

Membership in a corporation is based on the ownership of one or more shares of stock of the corporation.

Correct AnswerverifiedShow Answer

Shareholders exercise direct control over their corporation.

Correct AnswerverifiedShow Answer

Under the RMBCA, a preincorporation subscription agreement is irrevocable for six (6) months unless the subscription agreement provides a longer or shorter period, or all of the subscribers agree to revocation.

Correct AnswerverifiedShow Answer

No writing is required for a contract by which a broker agrees with a customer to buy or sell securities for the customer.

Correct AnswerverifiedShow Answer

A shareholder may make an absolute transfer of stock or may transfer it merely as collateral to secure the payment of a debt.

Correct AnswerverifiedShow Answer

A shareholder does not:

Correct AnswerverifiedShow Answer

Which of the following statements is not true of common stock?

Correct AnswerverifiedShow Answer

Preferred stock cannot have priority over common stock with respect to dividends.

Correct AnswerverifiedShow Answer

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