MUHASEBE II - Deneme Sınavı - 7

• Corporations are separate legal entities. They are organized independently of their shareholders

• Shareholders have limited liability in cor-porations.

• Corporations have continuous lives.

• Transferability of ownership is easy in cor-porations in comparison to other types of entities.

• Raising more capital can be easy in cor-porations in comparison to other types of entities.

• Vote: Coequal shareholders legally own the corporation. They can manage the corpora-tion indirectly through a board of directors they elect. Shareholders vote on some mat-ters at shareholders’ meetings. In normal conditions, each share carries one vote.

• Dividends: When declared, shareholders receive a proportionate of some dividend. Generally, each share receives an equal amount of dividend.

• Liquidation: When a corporation goes out, shareholders may receive their proportion-ate share of any asset that still remains.

• Preemption: Shareholders have the right to maintain their proportionate ownership in corporations.

• Receiving Information: Shareholders have the right to access information related to the corporation

The management of the corporation may want;

• to avoid a takeover and be cautious about outsiders.

• to reissue the shares to employees and reward them.

• to promote the price of the shares by in-creasing the trading of the shares.

• to resell its own shares with a higher price.

• to reduce the number of outstanding shares for some ratio analysis

1. Sufficient retained earnings
2. Adequate cash
3. Declared dividends by the board of directors

The correct answer is E.

50,000 x 15 x 7% = 52,500 TL

The correct answer is D.

77,000 x 12 x 13% = 120,120 TL

The correct answer is A.