When a Corporation Has Only One Class of Shares, Which

question 18

Multiple Choice

When a corporation has only one class of shares, which of the following is NOT one of the rights of shareholders?

• A)To vote at any shareholder meeting of the corporation.
• B)To vote at any director meeting of the corporation.
• C)To receive any dividend declared by the corporation.
• D)To receive any residual property of the corporation on dissolution.

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Definitions:

Large Number of Assets

Refers to having a substantial amount of different assets, typically to diversify and reduce risk.

Security Market Line

A line in the Capital Asset Pricing Model (CAPM) that represents the expected return of a security based on its systematic risk or beta.

Return Rate

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Intercept Point

The exact point on a graph where two lines meet, often used in statistical analysis and economics.