Which Statement About "Common Shares" Is Not Correct

question 4

Multiple Choice

Which statement about "common shares" is not correct?

• A)They have the most upside potential if a company performs well.
• B)A corporation does not need to issue any class of common shares.
• C)Common shares represent the ownership interest of the equity holders.
• D)They have the most downside risk if a company does not perform well.

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Definitions:

Beliefs

Fundamental convictions or principles that people hold to be true.

Behaviour

The actions or reactions of an individual or group in response to external or internal stimuli, often studied in psychology and organizational management.

Sweatshop

A workplace, often a factory, where workers are employed under poor, unsafe conditions and for very low wages.

Poor Conditions

Refer to unfavorable or substandard environments, often relating to living or working spaces that impact health and well-being negatively.