Monday, November 11, 2019

You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf.

You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf. What is the granting of this authority called? 
 
A. 
altering

B. 
cumulative voting

C. 
straight voting

D. 
indenture agreement

E. 
voting by proxy
Refer to section 8.2

AACSB: Analytic
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 08-02 How to value stocks using multiples.
Section: 8.2
Topic: Proxy
 

8.
What are the distributions to shareholders by a corporation called? 
 
A. 
retained earnings

B. 
net income

C. 
dividends

D. 
capital payments

E. 
diluted profits
Refer to section 8.2


9.
Which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securities? 
 
A. 
senior bond

B. 
debenture

C. 
warrant

D. 
common stock

E. 
preferred stock
Refer to section 8.2

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