1. The articles of incorporation establish the corporation. The articles allow the corporate entity to issue (sell) a specified number of shares. Describe the different terms used to describe the number of shares in a corporation and the rights of stockholders.

2. When a company reacquires its own shares it can retire the stock or hold them as treasury shares. What rights and privileges accrue to treasury stock? What methods are used to account for the purchase of treasury shares?

3. Describe each type of dividend a company can payout to its stockholders of record. How does a liquidating dividend differ from the other types of dividend payments?