Reference no: EM132939945
Problem 1: Preference shares gives the holder certain advantages over ordinary shareholders such as
a. preferred as to assets only.
b. preferred to vote on selection of board of directors.
c. preferred as to dividends.
d. preferred as to dividends, to assets and to vote.
Problem 2: Which of the following accounts will not form part of legal capital of the corporation?
A. Subscribed Ordinary shares, P100 par value, 50,000 shares
B. Ordinary shares, P100 par value, 500,000 shares authorized, 100,000 shares issued.
C. Share Premium - Ordinary
D. 6% Preference shares, P1,000 par value, 1,000 shares issued.
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