Asked by Princess Ritsu on Jun 24, 2024
Verified
Which of the following is not a right possessed by common stockholders of a corporation?
A) the right to vote in the election of the board of directors
B) the right to receive a minimum amount of dividends
C) the right to sell their stock to anyone they choose
D) the right to share in assets upon liquidation
Common Stockholders
Individuals or entities that own shares of common stock in a corporation, granting them voting rights and a share in the company's profits.
Minimum Dividends
The smallest amount of dividends a company decides to pay out to its shareholders, often based on agreements or policy.
- Differentiate between the rights and limitations of common stockholders.
Verified Answer
MT
Megan TruongJun 30, 2024
Final Answer :
B
Explanation :
While common stockholders have the right to vote for the board of directors, the right to sell their stock, and the right to share in assets upon liquidation, they do not have the right to receive a minimum amount of dividends. The payment and amount of dividends are determined by the board of directors and can vary from year to year depending on the company's financial performance and other factors.
Learning Objectives
- Differentiate between the rights and limitations of common stockholders.