BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Total shares of ownership in a corporation.
A
capital stock
B
corporation
C
share of stock
D
none of these
Explanation: 

Detailed explanation-1: -The total ownership of a corporation rests with the holders of the capital stock outstanding. For example, when a corporation authorized to issue 10, 000 shares of capital stock has issued only 8, 000 shares, the holders of the 8, 000 shares own 100 percent of the corporation.

Detailed explanation-2: -How Many Shares of Stock are Required? A corporation can’t be a corporation without at least one share of stock. So you must have at least one shareholder, and one share of stock. You can have (authorize) as many shares of stock as you want, however, this may increase your filing fees in some cases.

Detailed explanation-3: -Shares represent ownership of a company. When an individual buys shares in your company, they become one of its owners. Shareholders choose who runs a company and are involved in making key decisions, such as whether a business should be sold.

Detailed explanation-4: -Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. A corporation’s charter establishes the amount of shares the corporation may issue, and the board of directors can either issue the maximum amount or retain a portion of the shares.

Detailed explanation-5: -It is calculated by multiplying the number of shares issued with the par value per share.

There is 1 question to complete.