Which of the Following Statements About Issuing Common Shares Is

question 42

Multiple Choice

Which of the following statements about issuing common shares is true?

• A)The total amount received is referred to as legal capital and it cannot be paid out as dividends.
• B)The total amount received is referred to as legal capital and it may be paid out as dividends once the company is profitable.
• C)All classes of common shares pay identical dividends.
• D)All classes of common shares have the same voting rights.

---

Definitions:

Primary Occupation

The main job or profession through which an individual gains the majority of their income or spends the most working hours.

Inherent Factors

Characteristics or attributes that naturally exist within a person, object, or situation from the beginning.

Flexible and Innovative

The ability to adapt to changes and introduce new ideas or procedures effectively.

Management Expertise

The specialized knowledge and skills required to effectively organize, direct, and control business operations.