Accounting Exam 4 Final Quiz With 100% Correct Answers.

Which of the following is NOT normally a feature of Preferred Stock? A. Voting rights B. Preferred rights to divdends (before Common stock) C. Preferred rights to liquidation proceeds (before Common stock) D. Callable or Convertible {Ans: A. Voting rights}Which of the following is NOT true about the characteristics of preferred stock. A. It gets preferred rights to the assets of the corporation if the corporation quits and liquidates B. It can possibly be callable (bought back) or convertible (exchanged for common stock) C. It carries preferred voting rights (vote counts for more than the common stock) D. It often carries preferred dividend rights {Ans: C. It carries preferred voting rights (vote counts for more than the common stock)}Which of the following are advantages of incorporating (reasons that a company might want to be a corporation)? Mark all that apply. A. Allows ownership to be transferred relatively easily B. Stock ownership helps determine the strength or voting power of each owner C. Allows multiple owners to join together in a business D. Stock may be sold in a public stock exchange to raise capital E. Requires owners to assume personal responsibility for the debts of the business