Companies Can Issue Different Classes of Common Stock

question 1

Multiple Choice

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

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

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Attributions

Refers to the process by which individuals explain the causes of behavior and events.

Cognitive Dissonance

The mental discomfort experienced by a person who holds contradictory beliefs, values, or attitudes, often leading to an alteration in one of the beliefs or attitudes.

Boring Task

A task or activity that is perceived as monotonous and uninteresting to an individual.