Which of the Following Is NOT a True Statement

question 58

Multiple Choice

Which of the following is NOT a true statement?

• A)Common shareholders are the true owners of the corporation.
• B)Common shareholders are the residual claimants of the corporation.
• C)Common shareholders are entitled to the remaining assets before all other claims have been satisfied in the case of liquidation of the corporation.
• D)Common shareholders have the right to vote on major issues, such as takeovers, corporate restructuring, and so on.

---

Definitions:

Rational Investor

An individual who makes decisions by maximizing expected utility, based on consistent preferences and available information.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the total amount loaned.

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefits.

Geometric Series

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the ratio.