Discuss the various laws and contracts that govern the rights and obligations of a shareholder
Various laws and contracts govern the rights and obligations of a shareholder:
1 . The corporation laws of the jurisdiction in which incorporation takes place.
2 . The articles of incorporation or the corporate charter. This contract sets out the agreement between the firm and the jurisdiction in which the business incorporates. The jurisdiction grants to the firm the privileges of operating as a corporation for certain stated purposes and of obtaining its capital through the issue of shares of stock.
3 . The corporate bylaws. The board of directors adopts bylaws, which are the rules and regulations governing the internal affairs of the corporation.
4 . The capital stock contract. Each type of capital stock has its own provisions on matters such as voting, sharing in earnings, distributing assets generated by earnings, and sharing in assets in case of dissolution of the firm. Both U.S. GAAP and IFRS require the disclosure of information about the rights of each type of capital stock outstanding.
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A shoe manufacturing company uses ads featuring the members of a country music band with the hope that the band's fans will see them wearing the company's shoes and hence purchase the same brand of shoes
The shoe company believes that the band portrays the image of a ________ to the band's fans. A) membership group B) reference group C) status symbol D) subculture E) lifestyle
A variance represents the difference between a budgeted and an actual cost. Thus, the variance measures
a. only controllable cost differences. b. only uncontrollable cost differences. c. both uncontrollable and controllable cost differences. d. the effectiveness of management.
The payee of a note records it as a notes payable on its books
Indicate whether the statement is true or false
In a perfectly competitive labor market, the best protection an employee has against exploitation by his or her employer is:
A. Other employees B. The government C. Other employers D. Labor unions