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:

Test Condition

Specific circumstances or criteria established to conduct an experiment or test to observe outcomes or verify hypotheses.

Strongly Warrant

To greatly justify or provide sufficient reason for an assertion, claim, or action.

Strongly Support

To express emphatic backing or endorsement of an idea, proposal, or individual.

Dismissing Claim

The act of rejecting or ignoring a statement or argument without giving it proper consideration or offering sufficient evidence to the contrary.