1. Which of the following accurately describes the corporation characteristic that describes one method a corporation could use to generate cash?

Group of answer choices

(a) Shareholders may sell their stock

(b) Corporation can obtain capital through the issuance of stock.

(c) Separation of ownership and management prevents owners from having an active role in managing the company.

(d) Corporations pay income taxes as a separate legal entity and in addition, stockholders pay taxes on cash dividends.

2.Which is NOT true concerning preferred stock?

Group of answer choices

(a) receive dividends only after common stock holders

(b) sometimes do not have voting rights

(c) have priority in relation to assets in the event of liquidation

(d) have priority in relation to dividends

3.When a company decides to issue a common stock dividend instead of giving cash dividends, one of the outcomes is...

Group of answer choices

(a) The par value of common stock will decrease.

(b) Increase the market value of the corporation's stock.

(c) Increase of the par or stated value per share

(d) Total stockholders' equity remains the same