Multiple Classes of Stock Are Primarily Created to

question 24

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:

Desire

Desire is a strong feeling of wanting or wishing for something to happen or to possess something, often driving motivation and action.

Organized Strategy

A systematically planned approach to achieve predetermined goals, focusing on order and structure.

Economic Appeal

A persuasive strategy focusing on the financial benefits or cost-saving aspects of a proposition to win support or influence decisions.

Opt Out

The choice to not participate or withdraw from something, such as a subscription, service, or activity.