Which Statement Describes a Typical Common Shareholder of a Corporation

question 5

Multiple Choice

Which statement describes a typical common shareholder of a corporation?

• A) He has the right to act for the firm.
• B) He has the right to receive declared dividends.
• C) He can always buy new shares in proportion to shares already owned.
• D) He can fire employees of the corporation.

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Definitions:

Majority Shareholders

Individuals or entities that own more than half of the shares in a corporation, giving them significant control over the company's decisions.

Voting Trust

An arrangement transferring shareholders' voting rights to trustees, often used to consolidate control of a company.

Corporation's Offices

Formal premises or spaces designated for the operation and administration of a corporation.

Inspection

The act of examining something or someone closely to ensure they meet specified standards.