Multiple Classes of Stock Are Primarily Created to

question 46

Multiple Choice

Multiple classes of stock are primarily created to

• A)allow certain shareholders to retain control of a firm.
• B)replace cash dividends with share repurchases.
• C)allow common stock to have cumulative privileges.
• D)eliminate pre-emptive rights.
• E)ensure all shareholders have equal rights.

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Definitions:

Sympathetic Impulses

Nerve impulses transmitted by the sympathetic nervous system, part of the autonomic nervous system that controls the body's responses to stress or emergency situations.

Angry

A strong emotional state or reaction characterized by annoyance, displeasure, or hostility.

Relaxed

A state of physical or mental ease, often free from tension and anxiety.

Somatic Motor Nervous System

A part of the peripheral nervous system that controls voluntary movements of the body by innervating skeletal muscles.