Wednesday, November 13, 2019

Which of the following are cash flows from a corporation into the financial markets?

Which one of the following parties has ultimate control of a corporation? 
 
A. 
chairman of the Board

B. 
board of directors

C. 
chief executive officer

D. 
chief operating office

E. 
shareholders
Refer to section 1.4


53.
Which of the following parties are considered stakeholders of a firm?

I. employee
II. long-term creditor
III. government
IV. common stockholder 
 
A. 
I only

B. 
IV only

C. 
I and III only

D. 
II and IV only

E. 
II, III, and IV only
Refer to section 1.4


54.
Which of the following represent cash outflows from a corporation?

I. issuance of securities
II. payment of dividends
III. new loan proceeds
IV. payment of government taxes 
 
A. 
I and III only

B. 
II and IV only

C. 
I and IV only

D. 
I, II, and IV only

E. 
II, III, and IV only
Refer to section 1.5


55.
Which of the following are cash flows from a corporation into the financial markets?

I. repayment of long-term debt
II. payment of government taxes
III. payment of loan interest
IV. payment of quarterly dividend 
 
A. 
I and II only

B. 
I and III only

C. 
II and IV only

D. 
I, III, and IV only

E. 
I, II, and III only
Refer to section 1.5


56.
Which one of the following is a primary market transaction? 
 
A. 
sale of currently outstanding stock by a dealer to an individual investor

B. 
sale of a new share of stock to an individual investor

C. 
stock ownership transfer from one shareholder to another shareholder

D. 
gift of stock from one shareholder to another shareholder

E. 
gift of stock by a shareholder to a family member
Refer to section 1.5

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