Which of the Following Is Not a Right Possessed by Common

question 111

Multiple Choice

Which of the following is not a right possessed by common stockholders of a corporation?

• A) the right to vote in the election of the board of directors
• B) the right to receive a minimum amount of dividends
• C) the right to sell their stock to anyone they choose
• D) the right to share in assets upon liquidation

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Definitions:

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for, including both operating activities and investments.

Financing Activities

Transactions related to a company's raising or repaying capital, such as issuing shares, paying dividends, or taking on new loans.

Cash Dividends

Money distributed by a corporation to its shareowners, frequently as a dividend from profits.

Operating Activities

Transactions and other events that are not investing or financing activities, usually involving the production and delivery of goods and services.