MULTIPLE CHOICE:

1. The declaration date of dividends is

a. The date that dividends are paid.

b. The date that the stockholders who are eligible for dividends are identified.

c. The date that dividends are announced and recorded as payable.

d. The date that market value is determined.

e. The date the corporation must pay taxes.

2. A disadvantage of the corporate form of business is

a. The difficulty with which a a corporation can be formed.

b. Limited liability.

c. Unlimited life.

d. Ease of transferring ownership.

e. Reversionary interest.

TRUE/FALSE Question:

2. Premium is a term used to indicate the sale of stock at a price higher than par value.

3. Discount is a term used to indicate the sale of stock at a price higher than par value.

4. Cumulative preferred stock means the stockholer has dividend rights every year.

5. Stock splits are meant to lower the market price of a corporation's stock.