1.True or False? There are three criteria that must be met in order for a share...
1.True or False? There are three criteria that must be met in order for a share purchase plan to be considered noncompensatory. If all three criteria are not met then the plan is considered compensatory.
2. Which of the following is not a characteristic of the corporate form of business entity?
a.Owners often are not an active part of management.
b. It is a separate legal entity.
c. It has an indefinite life span.
d. Owners have unlimited liability.
3. Smith Corp. has both Class A and Class B shares of common stock. The difference between the two classes of stock is most likely related to
a. Class A shareholders receiving dividends while Class B shareholders do not
b. Class A stock being worth more than Class B stock
c. Class A shareholders having better preemptive rights than Class B shareholders
d. Class A shareholders having greater voting rights than Class B shareholders
True or False? Noncontrolling interest reported on the balance sheet represents the amount of the net assets of a company that are owned by shareholders other than the common shareholders of that company.
Homework Answers
1. ANSWER - TRUE, ALL THREE CRITERIA NEED MUST BE MET IN ORDER A SHARE PURCHASE PLAN TO BE CONCIDERED NON COMPENSATORY
2. ANSWER - D
3. ANSWER - D
4. ANSWER - FALSE
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