Asked by Hannah Emmett on May 07, 2024
Verified
Statement I.Bondholders are owners of a corporation.
Statement II.Common stockholders have voting control of a corporation.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Bondholders
Individuals or institutions that hold the debt securities issued by governments or corporations, entitled to receive interest payments and the principal on maturity.
Common Stockholders
Individuals or entities that own shares of common stock in a company, granting them certain rights like voting on corporate matters.
Corporation
A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities, capable of conducting business, owning assets, and being taxed.
- Identify the distinctions among different kinds of investments and monetary instruments.
Verified Answer
AM
Adrian MonteroMay 10, 2024
Final Answer :
B
Explanation :
Bondholders are not owners of a corporation, but rather creditors who lend money to the corporation. Common stockholders are the owners of the corporation, but voting control can also be granted to preferred stockholders or through other mechanisms such as a board of directors. Therefore, statement I is false and statement II is true.
Learning Objectives
- Identify the distinctions among different kinds of investments and monetary instruments.