Erin Is a Shareholder in Far East Adventures

question 19

Multiple Choice

Erin is a shareholder in Far East Adventures. As a shareholder,Erin

• A)owns shares of stock in Far East Adventures.
• B)is the founder of Far East Adventures.
• C)has no say in the election of Far East Adventures's board of directors.
• D)is liable for all the debts of Far East Adventures.

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Definitions:

Authorized

Authorized refers to the maximum number of shares a corporation is legally permitted to issue, as specified in its charter.

Common Stockholders

Individuals or entities that own shares of a company's common stock, giving them rights to vote on company matters and receive dividends, subject to the company's performance and dividend policy.

Voting Rights

Rights granted to shareholders to vote on matters of corporate policy, including decisions on the composition of the board of directors.

Total Stockholders' Equity

The total net value of a company as determined by subtracting its total liabilities from its total assets, representing ownership interest.