Company A takes control of Company B by buying organizing a public relations campaign to encourage stockholders to vote out the current board of directors. This strategy is known as a Corporate Raid Proxy Fight Tender offer Friendly Takeover 2 points QUESTION 2 Which of the following is an independent contractor? A fitness instructor who is paid to teach a Zumba class at a specific time weekly at a privately-owned gym. A landscaper who is paid to mow the lawn of an office building twice a month. A shift manager at a local fast food restaurant. A car salesperson whose pay structure is commission only. 2 points QUESTION 3 Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Connie is paid monthly and earned $5,000 in the first month of the year. How much is her take-home pay assuming no other deductions other than the required tax deductions? 3,067.50 None of these $2,817.50 $3,267.50 $3,087.50 2 points QUESTION 4 Publisher Inc. has 1,000,000 shares of common stock authorized. In 2020, Publisher issued 400,000 shares. In 2021, Publisher reacquired 75,000 shares of its own stock. How many shares outstanding does Publisher Inc. have after the 2021 transaction? 325,000 shares 600,000 shares None of these 475,000 shares 925,000 shares 2 points QUESTION 5 Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Ren is paid monthly and earns $13,000 per month. How much will Ren's net pay be for the month of November assuming the only deductions are required taxes? $9,843.40 $8,183.50 None of these $8,495.50 $8,507.90 2 points QUESTION 6 At the beginning of the current year, Symbol Corporation had $20,000 of dividends in arrears on preferred stock. This represents the dividend requirement for a four-year period. During the current year, common shareholders received a dividend distribution. How much in preferred dividends was paid during the current year? $20,000 $30,000 $25,000 $40,000 Not enough information provided 2 points QUESTION 7 On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current market price of $11. The stock was originally issued for $8. On August 22, Solo reissued the stock for $15. What is the overall effect of the February 13 and August 22 transactions on Solo's financial statements? Assets increase and equity decreases by $200,000 Assets increase and equity increases by $200,000 None of these Assets decrease and equity increases by $200,000 Assets decrease and equity decreases by $200,000 2 points QUESTION 8 Which of the following is NOT a ghost employee? An independent contractor A fabricated person A former employee A deceased person 2 points QUESTION 9 Guillermo works at the Foundry as a crane operator and is paid $38 an hour. His regular work week is 40 hours per week and he is paid weekly. During the most recent work week, Guillermo worked 44 hours. How much is Guillermo's gross pay for the week? Guillermo is a nonexempt employee and the Foundry follows the federal law for applying overhead. $1,925 $1,672 $1,872 $1,748 None of these 2 points QUESTION 10 On July 1, Afghan Corporation declared a dividend to be paid on August 4. What is the effect on the financial statements of the combination of these two transactions? Liabilities increase and equity decreases Assets decrease and equity decreases None of these Assets decrease and profits decrease Liabilities decrease and equity increases 2 points QUESTION 11 Assume a FICA for Social Security rate of 6.2%, a FICA for Medicare rate of 1.45%, a federal income tax withholding rate of 20%, a state income tax withholding rate of 7%, a federal unemployment rate of 0.6%, and a state unemployment rate of 3%. Also assume the wage limit for social security is $142,800 and the wage limit for both FUTA and SUTA is $7,000. Connie is paid monthly and earned $5,000 in the first month of the year. How much will Connie's employer remit to the U.S. Treasury for federal taxes for only this one paycheck? $2,065.00 $1,795.00 None of these $1,682.50 $1,412.50 2 points QUESTION 12 Which of the following is not a characteristic of the corporate form of organization? The corporation is an effective method of obtaining large amounts of capital. Stockholders decide by majority vote the amount of dividends to be paid. None of these. Shares of stock in a corporation are readily transferable. The owners of a corporation cannot lose more than the amount of their investment.