Corporations 11

Question 1

_______ are debt interest in the Corporation.

Answer 1

Bonds

Question 2

Bonds are _____ ______ in the corporation.

Answer 2

debt interest

Question 3

A ______ is a promise by the Corporation to repay a specific sum of money at a definite time, with periodic payments of interest.

Answer 3

Bond

Question 4

A bond is a _______ by the ________ to repay a specific sum of money at a definite time, with periodic payments of interest.

Answer 4

promise

corporation

Question 5

A bond is a promise by the corporation to _______ a ______ ______ of _______ at a definite time, with periodic payments of interest.

Answer 5

repay

specific sum

money

Question 6

A bond is a promise by the corporation to repay a specific sum of money at a _____ ______ with ______ _______ of _______.

Answer 6

definite time

periodic payments of interest

Question 7

No right to vote or control the corporation.

Answer 7

bonds

Question 8

Contract for bond =

Answer 8

indenture

Question 9

What are the 2 types of bonds?

Answer 9

registered v. bearer bonds

Question 10

Can bonds be redeemed?

Answer 10

yes

Question 11

Bonds may ______ ______.

Answer 11

specify priority

Question 12

Bonds may be converted into ____ _______ according to the _______.

Answer 12

equity interest

indenture

Question 13

____ ______ are rated by ______ rating companies.

Answer 13

public bonds

private

Question 14

Tax advantages

Answer 14

bonds

Question 15

Easier to refinance

Answer 15

bonds

Question 16

cheaper than borrowing from a bank

Answer 16

bonds

Question 17

you don’t give out more control!

Answer 17

bonds

Question 18

________ is a legally binding contract law analysis and potentially securities law.

Answer 18

debt

Question 19

________ is generally comprised of either _______ or ______.

Answer 19

debt

loans or bonds

Question 20

______ with either be ________(no collateral required) or ______. _____ debt with multiple lenders will generally require a determination of lien property.

Answer 20

debt

unsecured

secured

secured

Question 21

The ____ ______ will have many contractual provisions designed to protect against risk to the lender.

Answer 21

loan agreement

Question 22

The _______ will assess an interest charge to the borrower as the cost of utilizing the lender’s funds.

Answer 22

lender

Question 23

What is a payment of profit to shareholders?

Answer 23

Dividends

Question 24

What are dividends?

Answer 24

A payment of profit to shareholders

Question 25

What can make stock more attractive and boost morale?

Answer 25

dividends

Question 26

Dividends can make ______ more attractive and boost morale.

Answer 26

stock

Question 27

What is taxable to the shareholder?

Answer 27

Dividends

Question 28

Dividends are _______ to the shareholder! (perhaps including _____ ___ ____!)

Answer 28

taxable capital gains taxes

Question 29

Timing and amount determined by board discretion

Answer 29

dividends

Question 30

Who determines the time and amount of dividends?

Answer 30

board discretion

Question 31

Limits on distributions 1. ? 2. 3. 4.

Answer 31

1. Solvency test

Question 32

Limits on distributions 1. 2. ? 3. 4.

Answer 32

2. Balance Sheet Test (impairment of Capital Test; Technical Insolvency Test)

Question 33

Limits on distributions 1. 2. 3. ? 4.

Answer 33

3. Can make stock more attractive and boost morale

Question 34

Limits on distributions 1. 2. 3. 4. ?

Answer 34

4. Taxable to the shareholder