Which of the Following Is Not a True Statement

question 34

Multiple Choice

Which of the following is not a true statement?

• A) Common shareholders have a residual claim to income.
• B) Bondholders may force a corporation into bankruptcy for failure to make interest payments.
• C) Common shareholders are legally entitled to some dividend.
• D) A minority interest can still elect members to the board of directors under cumulative voting even though someone else owns 51% of the stock.

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Definitions:

Equal Employment Opportunity Commission

A federal agency tasked with enforcing laws prohibiting discrimination in the workplace.

Settlement Fails

Occurrences in securities trading where a trade cannot be settled as scheduled due to reasons like insufficient funds or securities.

"Right to Sue" Letter

A document issued by the Equal Employment Opportunity Commission allowing a claimant to sue in federal court after an EEOC investigation of a complaint.