Discuss preemptive rights. Are preemptive rights more important in a closely held corporation or in a publicly held corporation? Explain
Preemptive rights are a shareholder's rights to purchase a pro rata share of new stock. Preemptive rights are more important in a closely held corporation than in a publicly traded one. This is because a closely held corporation usually has only a few shareholders, and the proportionate share owned by each shareholder is significant in determining who will control the corporation. In the absence of preemptive rights, a shareholder may be unable to prevent a dilution of his ownership interest in the corporation.
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Which one of the following inventories may be valued for balance sheet purposes at the inventory's selling price less distribution costs even if it is above the cost of the inventory?
A) automobiles for an automobile manufacturer B) gold for a mining corporation C) steel for a steel manufacturer D) athletic shoes for a retail store
Which of the following is an example of an accrual?
A) Purchase of equipment. B) Prepaid insurance. C) Salaries earned but not yet paid. D) All of these choices.
Explain management's responsibility as it pertains to internal control of a company
"Stars" are one of the four types of employees based on the degree of organizational commitment and task performance. Stars are likely respond to negative events with ________ because they have the desire to improve the status quo and the credibility needed to inspire change.
A. ignorance B. voice C. exit D. loyalty E. neglect