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Question 1 1.25 pts Which of the following is not a characteristic of a corporation? Limited liability Access to limited amounts of capital Owners are considered stockholders Double taxation Question 2 1.25 pts If 50,000 shares are authorized, 37,000 shares are issued, and 2,000 shares are reacquired, the number of outstanding shares is 37,000. True False Question 3 1.25 pts One of the conditions for paying a cash dividend is formal action by the board of directors. True False Question 4 1.25 pts The par value per share of common stock represents: the amount of dividends per share to be received each year. the minimum selling price of the stock established by the articles of incorporation. the monetary amount assigned to each share of stock in the articles of incorporation. the minimum amount the stockholder will receive when the corporation is liquidated. Question 5 1.25 pts On which of the following dates does a company incur liability for a dividend? The date of record The date of liquidation The date of payment The date of declaration Question 6 1.25 pts Orange Inc. had 300,000 shares of $150 par value common stock outstanding at the beginning of the year. During the year, the company issued a 3-for-1 stock split. What is the number of shares outstanding after the split? 1,200,000 shares 600,000 shares 900,000 shares 300,000 shares Question 7 1.25 pts Preferred Stock, 7%, $115 par $1,170,000 Common Stock, $ 1.50 par 300,000 Paid in capital in excess of par, common stock 1,200,000 Retained earnings 2.500.000 Total $5,170,000 Based on the information above, how many shares of common stock are classified as issued? 300,000 200,000 1,000,000 1,500,000 Question 8 1.25 pts Preferred Stock, 7%, $115 par $1,170,000 Common Stock, $1.50 par 300,000 Paid in capital in excess of par, common stock 1,200,000 Retained earnings 2.500.000 Total $5,170,000 Based on the information above, what is the average selling price per share for common stock? $6.00 $7.50 None of these $1.50