Corporate finance test

Tests

Question 1. Give a definition of a corporation

1. A corporation is a legal entity that, being an association of individuals, is independent of them, that is, self-governing. Legal separation of the corporation from its members gives it advantages that are not available to other forms of association
2. A corporation is a union of individuals
3. A corporation is a legal entity that, being an association of individuals, is dependent on them

Question 2. The main features of a corporation

1. Four attributes of a corporation: legal entity; limited liability; free sale of shares; centralized management of the board of directors
2. Three attributes of a corporation: legal entity; limited liability; centralized management of the board of directors
3. Two signs of a corporation: free sale of shares; centralized management of the board of directors

Question 3. What organizations are recognized as a joint stock company in the Russian Federation?

1. A joint-stock company is a commercial organization, the authorized capital of which is divided into a certain number of shares, certifying the obligations of the company's members (shareholders) in relation to the company. The activities of a joint stock company in the Russian Federation are regulated by the Federal Law “On Joint Stock Companies”. The participants of the joint-stock company (shareholders) are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the value of their shares.
2. Joint-stock company is a non-profit organization
3. A joint-stock company is a commercial organization, the authorized capital of which is not divided into a certain number of shares, certifying the obligations of the company's members (shareholders) in relation to the company.

Question 4. What types of joint stock companies are distinguished in the Russian Federation?

1. Open and closed joint stock companies are separated.
2. Open and unclosed joint stock companies are separated.
3. Open and limited joint stock companies are separated.

Question 5. What are the main characteristics of modern Russian joint stock companies?

1. The main characteristics of modern Russian joint stock companies are: division of capital into shares; limited liability.
2. The main characteristics of modern Russian joint stock companies are: division of capital into shares; no limited liability.
3. The main characteristics of modern Russian joint stock companies are: no division of capital; limited liability.

Question 6. What joint stock company is called open?

1. Open Joint Stock Company (OJSC) - a form of organization of a public company; joint-stock company. The main difference from a closed joint stock company is the right of shareholders to dispose of their shares to individuals or legal entities without a decision of the general meeting of shareholders.
2. Open Joint Stock Company (OJSC) - a form of organization of a public company in which shareholders can dispose of their shares only to individuals.
3. Open Joint Stock Company (OJSC) is a form of organization of a public company in which shareholders cannot alienate their shares only to individuals.

Question 7. What are the advantages of JSC?

1. Advantages of OJSC: the number of shareholders is not limited, free sale of OJSC shares on the market, OJSC does not require opening a savings account and depositing money into the authorized capital before registration.
2. Advantages of OJSC: the number of shareholders is limited, free sale of OJSC shares on the market, OJSC requires opening a savings account and depositing money into the authorized capital before registration.
3. Advantages of OJSC: the number of shareholders is limited, free sale of OJSC shares on the market.

Question 8. What are the disadvantages of OJSC?

1. Disadvantages of OJSC: duration of establishment, openness of information (availability to competitors), obligation to disclose the annual report of the company, annual financial statements, the authorized capital of OJSC must be at least a thousand times the minimum p