Which of the Following Statements About the Benefits Enjoyed by the Owners

question 126

Multiple Choice

Which of the following statements about the benefits enjoyed by the owners of common stock is not correct?

• A)Some classes of common stock can carry more votes than others.
• B)Investors in a corporation are called stockholders.
• C)Stockholders receive a share of the corporation's profits when distributed as dividends.
• D)If the company ceases operations,stockholders share in any assets remaining before creditors have been paid.

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Definitions:

Fundamental Economic Question

The basic inquiries regarding how a society decides on the allocation of scarce resources to satisfy unlimited wants.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.

Dollar Votes

A concept in economics where consumers show preference for goods and services by how they spend their money, influencing production and market trends.

Goods And Services

Physical items that satisfy human wants and provide benefits, and intangible activities or benefits that are exchanged between parties.