Which one of the following is not the right of a stockholder in a corporation?

Answer the following questions and then press 'Submit' to get your score.

Question 1

Persons who take the procedural steps to set up a company and who make business preparations for the company are known as:

a) Directors.

b) Shareholders.

c) Registrars.

d) Promoters.

Question 2

Joe and Jamel wish to form a new company, which of the following documents must be lodged with the Registrar of Companies?
1. Memorandum of Association.
2. An application for registration.
3. A statement of compliance.
4. The appropriate fee.

a) 1, 2 and 4

b) 1,2,3, and 4

c) 1,3, and 4

d) 2 and 4

Question 3

Under the Companies Act 2006 the document that states the subscribers wish to form a company and have agreed to become members of that company is called:

a) The Company Articles.

b) The Statement of Compliance.

c) The Memorandum of Association.

d) The Company Guarantee.

Question 4

What is the internet registry for '.uk' domain names?

a) Companies House.

b) Nominet UK.

c) Dot. Com UK.

d) Internet Registration UK.

Question 5

Companies set up under the provisions of the Companies Act 2006 have one major constitutional document called:

a) The Company Constitution.

b) The Memorandum of Association.

c) The Articles of Association.

d) The Object Clause.

Question 6

Will a court permit an alteration of a Company's articles to be enforced if the alteration is to give the company the power to expel shareholders?

a) Yes, there are no restrictions on expelling shareholders.

b) Yes, provided there is a good reason and it is for the benefit of the company as a whole.

c) No, the Company's Act 2006 does not permit a shareholder to be expelled from a company.

d) No, the common law does not permit a shareholder to be expelled from a company.

Question 7

Which one of the following statements relating to debentures is incorrect?

a) Debenture stock is transferable.

b) A company may not purchase its own debentures.

c) A debenture holder is a creditor of the company.

d) A debenture is the written document issued by a company setting out the terms of a loan.

Question 8

Which one of the following is not a right of a shareholder?

a) To receive a dividend declared by the company

b) To attend and vote a meetings

c) To receive the company's accounts

d) To manage company affairs

Question 9

Shares issues without any special rights attached to them are known as:

a) Ordinary shares

b) Preference shares

c) Treasury shares

d) Capital shares

Question 10

What are redeemable shares?

a) Shares that cannot be transferred on the stock market.

b) Shares kept by a company to be sold at a later date.

c) Shares which when issued carry a right by the company to buy them back.

d) Shares that carry rights in preference to other shares.

Which of the following is not a right of shareholders of a corporation?

The answer is b. The stockholders, themselves, do not have the right to declare dividends to be paid to the...

Which of the following is a right of a stockholder of a corporation?

Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.

What are the four basic rights of stockholders?

The voting right, dividend right, liquidity right, and pre-emptive right are the four basic rights of stockholders.

Which of the following are not one of the characteristics of a corporation?

Hence, limited period of existence and centralized management are not typical characteristics of a corporation.