Which One of the Following Statements Related to Common Stock

question 42

Multiple Choice

Which one of the following statements related to common stock is correct?

• A) Corporations are required to pay annual dividends to its common stockholders.
• B) Corporations have the right to discontinue paying dividends.
• C) Corporations pay dividends at the discretion of the firm's president.
• D) Common stock is a form of corporate debt.
• E) Common stock has a pre-defined liquidation value.

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Definitions:

Physical Traits

Observable characteristics of an organism, such as hair color, body shape, and other features determined by genes.

Human Body

The physical structure of a person, including all organs, tissues, and cells.

Chromosomes

Structures within cells that contain DNA and carry genetic information necessary for reproduction, growth, and maintenance of organisms.

Noncoding DNA

Segments of DNA that do not code for proteins but have roles in regulating gene expression and maintaining chromosome structure, among other functions.