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business finance,accounting and law mcq quiz

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Question;1. Which of the following is not a right or attribute of;common stock ownership?;A. Electing directors.;B. Liability limited to amount invested.;C. Approving changes in corporate charter.;D. Determining dividend policy.;2. Which of the terms is not used to identify owners;equity?;A. Partner's capital.;B. Proprietor's capital.;C. Paid-in-capital and retained earnings.;D. Additional-paid-in-retained earnings.;3. Which of the following is not an owner's equity account?;A. Common stock.;B. Capital stock.;C. Retained earnings.;D. Accumulated depreciation.;E. Paid-in-capital in excess of par.;4. Another term frequently used to describe owners' equity;is;A. net assets.;B. gross assets.;C. paid-in capital.;D. capital stock.;5. Which of the following is one of the two generally;practiced methods for electing corporate directors?;A. Democratic voting.;B. Representative voting.;C. Cumulative voting.;D. Census voting.;E. None of the above.;6. If a common stock has no par value;A. there is no way of determining the market value per;share.;B. the stock must have a stated value.;C. there will not be any additional paid-in capital related;to it.;D. the stockholders do not have a preemptive right.;7. When common stock has a par value;A. the liability of the stockholders is limited to the par;value.;B. there will probably be additional paid-in capital in the;balance sheet.;C. the market value of the stock will be higher than if;there is no par value.;D. the paid-in capital will equal the par value of the;number of shares issued.;8. The dollar amount of the common stock in the balance;sheet of a corporation that has common stock with a par value is the number of;shares;A. issued, multiplied by the amount received per share.;B. outstanding, multiplied by the amount received per share.;C. issued, multiplied by the par value per share.;D. outstanding, multiplied by the par value per share.;9. Which of the following is not usually a right or;attribute of preferred stock?;A. Having a claim to dividends in excess of the annual;dividend requirement if dividends on common stock exceed dividends on preferred;stock.;B. Having a priority claim to dividends relative to the;common stock's claim to dividends.;C. Having a priority claim in liquidation relative to the;common stock's claim in liquidation.;D. Having a claim to dividends that is cumulative over time;if the annual dividend requirement is not satisfied.;10. Additional paid-in capital is most likely to appear in;the balance sheet of a corporation that;A. has par value stock.;B. has no-par value stock.;C. has issued stock at different dates.;D. has issued stock dividends.;11. Retained earnings represents;A. cash that is available for dividends.;B. the total net income of the firm since its beginning.;C. net income that has been reinvested in the company.;D. net income plus gains (or minus losses) on treasury stock;transactions.;12. Preferred stock is used much less than long-term debt in;the capital structure of most industrial and merchandising companies;principally because;A. the preferred stock dividend requirement is a fixed claim;against income, but interest on long-term debt is not a fixed amount.;B. preferred stock has a fixed liquidation or redemption;value, but long-term debt does not have a fixed maturity value.;C. preferred stock may be convertible to common stock, but;long-term debt cannot be convertible.;D. for income tax purposes, dividends paid on preferred;stock are not deductible, but interest on long-term debt is deductible.;13. The annual per share dividend requirement of a 6%, $80;par value preferred stock that was issued for $85 is;A. $4.80;B. $5.10;C. $6.00;D. $8.00;14. The number of shares of a class of stock that are outstanding;is;A. the number of shares authorized minus the number of;shares issued.;B. the number of shares authorized minus the number of;shares held in the treasury.;C. the number of shares issued minus the number of shares;held in the treasury.;D. the number of shares issued minus the number of shares;owned by directors.;15. A stock dividend is similar to a cash dividend in that;A. the stockholder's equity in the firm's net assets is;reduced by each.;B. the stockholder's cash is increased by each.;C. the stockholder's equity in the firm's net assets is;increased by each.;D. retained earnings and the amount of potential future;dividends is reduced by each.;1.) Which one of the following acts declared "Every;contract, combination... or conspiracy, in restraint of trade or commerce;among the several states... to be illegal"?;A. the Wheeler-Lea Act;B. the Federal Trade Commission Act;C. the Sherman Act;D. the Interstate Commerce Act;1/20;2.) The Clayton Act of 1914;A. outlawed price discrimination, tying contracts;intercorporate stockholding, and interlocking directorates that lessen;competition.;B. prohibited unfair or deceptive acts or practices in;commerce that tend to reduce competition.;C. outlawed vertical and conglomerate mergers.;D. prohibited one firm from acquiring the assets of another;when the effect was to limit competition.;1/20;3.) A function of the Federal Trade Commission is to;A. investigate instances of faulty and misleading advertising.;B. establish railway rates for interstate railroads.;C. ban or recall unsafe consumer products.;D. prevent insider trading in securities markets.;1/20;4.) Which one of the following is not prohibited by the;original Clayton Act?;A. the purchase of the stocks of rival firms that lessens;competition;B. the purchase of the assets of rival firms that lessens;competition;C. an exclusive dealer or tying agreements that lessen;competition;D. price discrimination that lessens competition;1/20;5.) The government was successful in gaining an antitrust;conviction in the;A. U.S. Steel case.;B. IBM case.;C. Alcoa case.;D. DuPont cellophane case.;1/20;6.) Which of the following laws prohibited mergers by stock;acquisition if the effect was to lessen competition?;A. Celler-Kefauver Act of 1950;B. Wheeler-Lea Act of 1938;C. Clayton Act of 1914;D. Sherman Act of 1890;1/20;7.) Tying agreements;A. establish common boards of directors for previously;competing firms.;B. obligate a purchaser of product X to also buy product Y;from the same seller.;C. allow manufacturers to specify the retail prices of their;products.;D. prohibit firms from selling their products outside of;specified geographic areas.;1/20;8.) The main purpose of the antitrust laws is;A. to encourage firms to produce where P > MC.;B. the elimination of both negative and positive;externalities.;C. to prevent the monopolization of industries.;D. to regulate natural monopolies.;1/20;9.) In which of the following cases did the final court;decision result in a breakup of the firm into competing businesses?;A. Microsoft case;B. Standard Oil case;C. U.S. Steel case;D. DuPont cellophane case.;1/20;10.) The rule of reason indicated that;A. if less than four firms account for three-fourths of an;industry's sales, the industry is in violation of the Sherman Act.;B. social regulation should not be enforced unreasonably so;that costs exceed benefits.;C. the mere possession of monopoly power is a violation of;the antitrust laws.;D. only contracts and combinations that unreasonably;restrain trade violate the antitrust laws.;1/20;11.) In the Alcoa case of 1945 the courts held that;A. the mere possession of monopoly power is a violation of;the antitrust laws.;B. only contracts and combinations that unreasonably;restrain trade are in violation of the Sherman Act.;C. retail and wholesale firms are exempt from antitrust;legislation.;D. firms which sell more than one-half of their output;overseas are exempt from antitrust.;1/20;12.) A merger between an automobile manufacturer and a maker;of automobile tires is an example of a;A. conglomerate merger.;B. horizontal merger.;C. vertical merger.;D. tying contract.;1/20;13.) Which of the following would, other things equal;increase the demand for U.S. farm products?;A. bumper crops abroad;B. depreciation of the U.S. dollar;C. deteriorating trade relations with China and Russia;D. increases in foreign tariffs on imported farm products;1/20;14.) A bumper crop of farm products causes;A. only a slight decline in the price of farm products;because the demand for farm products is income inelastic.;B. a large decline in the price of farm products because the;demand for farm products is price inelastic.;C. only a slight decline in the price of farm products;because the demand for farm products is income elastic.;D. a large decline in the price of farm products because the;demand for farm products is price elastic.;1/20;15.) Over time, technological change has;A. reduced both the price elasticity and income elasticity;of the demand for farm products.;B. reduced the minimum efficient scale of production in;agriculture and increased the prices of farm products.;C. increased both price elasticity and income elasticity of;the demand for farm products.;D. increased the minimum efficient scale of production in;agriculture and reduced the prices of farm products.;1/20;16.) Productivity increases in agriculture have;A. increased the demand for foodstuffs.;B. been negligible since the Second World War.;C. increased the incomes of farm households above the;national average.;D. lowered farm prices.;1/20;17.) One consequence of the long-run problem faced by farms;has been a;A. rapid increase in the price of farm output.;B. massive exit of workers from agriculture to other sectors;of the economy.;C. smaller average farm size.;D. reduction in U.S. exports of farm products.;1/20;18.) Which of the following is correct?;A. The rapid expansion of foreign incomes will reduce U.S.;agricultural exports.;B. A decrease in the international value of the dollar will;reduce U.S. agricultural exports.;C. An increase in the international value of the dollar will;reduce U.S. agricultural exports.;D. Changes in the international value of the dollar have no;effect on U.S. agricultural exports.;1/20;19.) Domestic price supports on, say, sugar;A. generate trade barriers to reduce imports of foreign;sugar.;B. increase world sugar prices.;C. keep the domestic price of sugar artificially low.;D. increase the earnings of foreign sugar producers.;1/20;20.) Price supports;A. decrease pollution because participants must practice;organic farming.;B. neither increase nor decrease environmental pollution.;C. increase pollution because supports encourage the;cultivation of marginal land and the use of more pesticides and fertilizers.;D. discourage rent-seeking activity.;1/20

 

Paper#42476 | Written in 18-Jul-2015

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