At Least One Class of a Company's Common Share Must

question 53

Multiple Choice

At least one class of a company's common share must have all three of the following rights except

• A)the right to vote at meetings of the company's shareholders.
• B)the right to receive dividends,if declared.
• C)the right to a share of the company's net assets upon liquidation of the company.
• D)the right to convert shares to cumulative participating preferred shares.

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Definitions:

Independent Events

Two events that have no influence on each other's occurrence, meaning the probability of one does not affect the other.

P(A And B)

The probability that events A and B both occur, which can be calculated directly or via the multiplication rule for independent events.

P(B|A)

The likelihood of event B happening after event A has already taken place.

Complement

The set or amount that completes something to a whole, usually in the context of sets in mathematics or the complement rule in probability.