Which of the Following Is Not a Characteristic of Common

question 170

Multiple Choice

Which of the following is not a characteristic of common stock?

• A) Shares can be sold for a capital gain if the price of the stock increases.
• B) The firm has no legal obligation to pay dividends to stockholders.
• C) An increase or decrease in the market value of the stock will have a corresponding effect on the value of the investment.
• D) Each share of stock represents debt for the corporation.
• E) Cash dividends are generally paid on a quarterly basis.

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Definitions:

Compensation Strategy

A plan or approach developed by an organization to determine how to use compensation and benefits effectively to attract, retain, and motivate employees.

Job Evaluations

The systematic process of determining the relative worth of jobs within an organization in order to establish a fair and equitable wage and salary structure.

Appeal Mechanisms

Formal processes within organizations that allow employees to contest decisions or policies that they feel negatively affect them.

Job Evaluation Process

A systematic method for determining the relative worth or value of a job in relation to other jobs within an organization, typically considering factors such as complexity, responsibilities, and qualifications.