Which of the Statements Below Is TRUE

question 68

Multiple Choice

Which of the statements below is TRUE?

• A)The profits for common stock owners come after payment to the employees,suppliers,government,and creditors.
• B)Shareholders elect the board of directors,which ultimately selects the bondholder team that runs the day-to-day operations of the company.
• C)Stock is a minor financing source for public companies.
• D)Stockholders are paid before debt holders (bondholders)if a company fails.

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Definitions:

US Steel

An American integrated steel producer, founded in 1901 by J.P. Morgan, Andrew Carnegie, and others, becoming the world's first billion-dollar corporation and a symbol of industrial growth.

Railroad Owners

Individuals or companies that own the infrastructure and rolling stock for railway transport, historically significant in the development and economic growth of many countries.

American Railway Union

A short-lived but significant labor union in the United States, founded in 1893 by Eugene V. Debs, that sought to unify all railroad workers, regardless of craft or job function, into one organization.

Pullman Cars

Luxury railway cars that were introduced in the 19th century, offering sleeping accommodations and other amenities, revolutionizing long-distance train travel.