A stockholder's ownership of a company's stock gives her the right toA) vote and be the primary claimant of all cash flows.B) vote and be the residual claimant of all cash flows.C) manage and assume responsibility for all liabilities.D) vote and assume responsibility for all liabilities.

A sale of all or substantially all of the corporation's properties and assets, including its goodwill, must be authorized by the vote of stockholders representing a majority of the outstanding capital stock, or a majority of the members, in a meeting duly called for the purpose.Group of answer choicesTrueFalse

Which of the statements is incorrect?Group of answer choicesStockholders are liable only to the extent of their investment as represented by the shares subscribed by them.A corporation is created by law or by operation of law.A stockholder has the right to transfer his shares without prior consent of the other stockholders.A stockholder is liable personally for corporate debts to third persons.

A common stockholder has the power and right to elect a firm`s directors.Select one:TrueFalse

Indicate whether each of the following items is an asset, liability, or part of stockholders’ equity.(a)Accounts receivableSelect an item  (b)Salaries and wages payableSelect an item  (c)EquipmentSelect an item  (d)SuppliesSelect an item  (e)DividendsSelect an item  (f)Notes payable

In the event of a company liquidation, which of the following will have the highest priority claim over the company’s assets?Preference shareholdersOrdinary shareholdersProviders of secured debtProviders of unsecured debt