1. Treasury shares are shares issued and are currently owned by shareholders. True / False

2. The purchase of treasury share creates an asset for the corporation. True / False

3. A corporation continues in existence even if a shareholder dies or withdraws from the

   organisation. True / False

4. Outstanding shares are issued shares that are owned by shareholders. True / False

5. The purchase of treasury share for cash causes no change in total

assets. True / False

6. When par value share is issued, share capital is credited with the par value of the

   shares issued, regardless of whether the issuance price is equal to par, more than par,

   or less than par. True / False

7. Preference shareholders are owners of the corporation and have rights to receive the

   same dividends as the ordinary shareholders. True / False

8. Preference shares have priority over ordinary shares in dividend distributions and

   distribution of assets in liquidation. True / False

9. For cumulative preference shares, dividends in arrears must be paid before dividends

   may be paid on ordinary shares. True / False

10.Preference shareholders generally have the same voting rights as ordinary

shareholders in a corporation do. True / False