1. Which of the following is a distinguishing characteristic attributable to preferred shares?
a. They give the right to a priority interest in a liquidated corporation's assets.
b. They must state "nonvoting" on the share certificate itself.
c. They give the right to be given notice of shareholders' meetings.
d. They must be issued as nonvoting shares with dividend rights.
2. What is most likely to be the result if a corporation fails to file its annual corporate returns?
a. winding up of the corporation
b. court-ordered termination
c. being struck from the registrar
d. dissolution of the corporation
3. Why are corporations seen as being capable of remedying many of the shortcomings found in the sole proprietorship and partnership business forms?
a. because corporations are easily formed business entities
b. because none of a corporation's assets are at risk
c. because some of the owners' assets in a corporation are at risk
d. because of a corporation's existence as a separate legal entity