Companies Can Issue Different Classes of Common Share

question 37

Multiple Choice

Companies can issue different classes of common share.Which of the following statements concerning share classes is correct?

• A)All common shares, regardless of class, must have the same voting rights.
• B)All firms have several classes of common share.
• C)All common shares, regardless of class, must pay the same dividend.
• D)Some class or classes of common share may be entitled to more votes per share than other classes.

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Definitions:

Higher Revenues

An increase in the amount of money received from sales or services, often an objective in businesses aiming to grow or expand.

Reservation Prices

The maximum price a buyer is willing to pay for a good or service or the minimum price a seller is willing to accept.

Bundling

The practice of selling two or more products or services together as a single package, often at a discounted rate.

All-you-can-eat Salad Bar

A service model in restaurants where customers pay a fixed price to consume as much salad as they wish from a variety of options.