Which Statement About Shares Is Not Correct

question 30

Multiple Choice

Which statement about shares is not correct?

• A)Common shares represent the ownership interest of the company.
• B)Any share that is not a common share is a preferred share.
• C)A company can have as many classes of common shares as it wishes.
• D)Preferred shares represent the residual interest of the company.

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Definitions:

Rival

In economics, a good or service that cannot be enjoyed by more than one person or group at the same time without diminishing its availability to others.

Excludable

Describes goods from which individuals can be easily excluded for non-payment, emphasizing property rights.

Free Rider

An individual who benefits from resources, goods, or services without paying for them, relying on others to bear the cost.

Fundraising Efforts

Activities or strategies implemented to gather financial support for a particular cause or project.