Which of the Following Is Not True of Common Stock

question 49

Multiple Choice

Which of the following is not true of common stock?

• A) Common stock represents partial ownership in the firm.
• B) Common stock is riskier than preferred stock.
• C) Investors in common stock are given voting rights.
• D) Investors in common stock are guaranteed a dividend.

---

Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), assuming all are efficiently utilized.

Straight Line

A direct path that connects two points and has the shortest distance between them.

Constant Rate

A fixed rate at which something occurs or is applied.

Term Papers

Research papers written by students over an academic term, accounting for a large part of a grade.