The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ___________________?

Related Mcqs:

1. What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for ?

   A. Dividend
   B. Equity
   C. Return
   D. Par value

2. What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation ?

   A. Bond
   B. T-bills
   C. Stock
   D. Promissory note

3. The flow back of profit plus depreciation form a given project is called ___________________?

   A. Capital recovery
   B. Cash flow
   C. Economic return
   D. Earning value

4. The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as _____________________?

   A. Yield
   B. Economic return
   C. Earning value
   D. Gain

5. The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now ?

   A. 10 months
   B. 11 months
   C. 12 months
   D. 13 months

6. A bond without any security behind them except a promise to pay by the issuing corporation is called __________________?

   A. Joint bond
   B. Debenture bond
   C. Trust bond
   D. Common bond

7. First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes ?

   A. 21 %
   B. 20 %
   C. 19 %
   D. 18 %

8. What stock represents ownership and enjoys certain preferences than ordinary stock ?

   A. Authorized stock
   B. Preferred stock
   C. Incorporator’s stock
   D. Presidential stock

9. Which is true about corporation ?

   A. It is worse type of business organization.
   B. The minimum number of incorporators to start a corporation is three.
   C. Its life is dependent on the lives of the incorporators.
   D. The stock holders of the corporation are only liable to the extent of their investments.

10. What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled ?

    A. Authorized capital stock
    B. Preferred stock
    C. Incorporator stock
    D. Common stock