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Question 1 

A company may be limited in their internal control procedures because the cost of hiring enough people to implement the procedures:
A) outweighs the benefits of the system.
B) has nothing to do with the effectiveness of the internal control system.
C) can prevent collusion.
D) can limit employee distractions.

Answer

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Question 2 

Shamrock Corporation has two classes of common stock outstanding. The Class A and Class B common stock give the shareholders identical rights and interests in the profits and assets of the corporation. Class A has one vote per share. Class B is nonvoting. Can Shamrock Corporation make an S corporation election?

Answer

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Question 3 

Earnings that a stockholder receives from a corporation is an example of which stockholder right?
A) Vote
B) Dividends
C) Liquidation
D) Preemption

Answer

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Question 4 

Stock that is held by stockholders is called:
A) issued stock.
B) authorized stock.
C) outstanding stock.
D) open stock.

Answer

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Question 5 

Stockholders will be issued ________ physically or electronically.
A) charters
B) articles of incorporation
C) authorized stock
D) stock certificates

Answer

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