Common shares: a. Allow shareholders to bind the corporation to contracts because they share in ownership....
Common shares:
a. Allow shareholders to bind the corporation to contracts because they share in ownership.
b. Represent residual equity in a corporation.
c. Make shareholders liable for acts of the corporation because they share in ownership.
d. Are usually redeemable.
e. Always represent total contributed capital.
Homework Answers
Answer is b.
1)Common Shares Represent residual equity in a corporation.
2 )Commons shares also known as equity shares and Ordinary Shares.
3). All equity shares will be entitled to participate in any dividend according to the number of shares when dividend is declared.
4 ) They entitled to Pari pasu of Distribution.
5) Common stock will represent ownership in the Corporation.
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Common shares:
a. Allow shareholders to bind the corporation to contracts
because they share in ownership....
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