CHOOSE THE CORRECT ANSWER

1.) It involves the order of priorities or creditors' rights against the partnership assets and the personal assets of the individual partners.

a.) Cash priority program

b.) Realization of assets

c.) Marshalling of assets

d.) Schedule of safe payment to partners

2.) They are corporators of a non-stock corporation.

a.) Partners

b.) Shareholders

c.) Members

d.) Promoters

3.) Where there is no bidder for delinquent subscription, the subscribed shares will be:

a.) retained as subscribed

b.) reverted back to unsubscribed shares

c.) issued in the name of the corporation

d.) issued to the delinquent subscriber

4.) Preference shares that have no claim on any prior year dividends that may have passed are called:

a.) participating preference shares

b.) non-cumulative preference shares

c.) cumulative preference shares

d.) non-participating preference shares

5.) The cost of organizing a corporation should be:

a.) deducted from share capital

b.) expensed in the year of organization

c.) reported as a tangible asset

d.) reported as an intangible asset