Which of the Following Statements Is Most Correct

question 23

Multiple Choice

Which of the following statements is most correct?

• A) Stockholders have limited liability and have no control over corporate leadership.
• B) Stockholders can dislodge the managers of the corporation but not the board of directors.
• C) Stockholders have unlimited liability and can dislodge members of the board of directors.
• D) Stockholders can dislodge members of the board and have limited liability.

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Definitions:

Notes Payable

A financial liability on a company's balance sheet representing promissory notes that require future payments of principal and possibly interest.

Maturity Value

The amount due to the owner of a financial instrument at its maturity date, including principal and interest.

Default

Failure of maker to pay the maturity value of a note when due.

Account Receivable

Debts incurred by customers for receiving goods or services from a business, which remain unpaid.