Which of the Following Would Be Considered a Violation of the Rights

question 90

Multiple Choice

Which of the following would be considered a violation of the rights of one or more classes of a firm's stakeholders?

• A) Common dividends are paid even though preferred dividends are in arrears.
• B) Preferred stockholders are paid before common shareholders in a liquidation.
• C) Common stockholders are able to place members on the board of directors to represent their interests in opposition to the board candidates backed by preferred shareholders.
• D) Common shareholders are able to vote by proxy even when they are unable to attend a shareholders' meeting in person.
• E) Debt is repaid before preferred shareholders are paid anything in a liquidation.

---

Definitions:

Insanity

A legal term for individuals who are determined to be unable to understand the nature and quality of their actions due to mental illness, preventing them from being responsible for criminal acts.

Defendant's Intent

A legal concept referring to the intention behind a defendant's actions, often crucial in determining the outcome of criminal cases.

Main Problems

Main problems refer to the primary or most significant issues or challenges within a particular context or situation.

Legal Rules

Established codes of conduct that are authorized and enforced by a governing authority and that must be followed by the members of a society.