Question

PLEASE Fill in the blanks:

1) The group responsible for overseeing the corporation's activities is /are the ________.

2) A corporation is responsible for its own acts and debts because it is considered a ________.

3) The number of shares that a corporation's charter allows it to sell is the ________ stock.

4) ________ bonds can be exchanged for a fixed number of shares of the issuing corporation's common stock.

5) ________ bonds have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity.

Answer 1

1) The group responsible for overseeing the corporation's activities is /are the " BOARD OF DIRECTORS"

Responsibilities of Borad Of Directors to Shareholders is to monitor the following that is declaring dividend policy or accountability or being the security for the investments or the return required on investment.

2) A corporation is responsible for its own acts and debts because it is considered a " SEPERATE LEGAL ENTITY"

A corporation possess the characteristic of having seperate legal entity i.e, it has a distinct individuality apart of it's members.

3) The number of shares that a corporation's charter allows it to sell is the " AUTHORIZED" stock.

The highest number of stock/shares that a corporation is legally permitted to issue is called, Authorized stock/shares.

4) " CONVERTIBLE BONDS" bonds can be exchanged for a fixed number of shares of the issuing corporation's common stock.

It is because,it possess the hybrid security with features of both debt and equity.

5) " CALLABLE BONDS" bonds have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity.

It's a bond which allows to redeem the bonds before the date of maturity by the issuer.

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