Companies Can Issue Different Classes of Common Stock

question 23

Multiple Choice

Companies can issue different classes of common stock.Which of the following statements concerning stock classes is CORRECT?

• A) All common stocks fall into one of three classes: A,B,and C.
• B) All common stocks,regardless of class,must have the same voting rights.
• C) All firms have several classes of common stock.
• D) All common stock,regardless of class,must pay the same dividend.
• E) Some class or classes of common stock are entitled to more votes per share than other classes.

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Definitions:

Production and Sales Process

The combined sequence of operations involved in manufacturing goods and selling them to customers.

Days Sales Outstanding (DSO)

A measure of the number of days that it takes to collect on accounts receivable.

Accounts Receivable

Money owed to the company for goods or services provided and billed to a customer.

Accounts Payable

Money owed by a business to its suppliers.