Which of the Following Statements Is False

question 29

Multiple Choice

Which of the following statements is false?

• A)Stockholders have a residual claim on assets in the event of liquidation.
• B)Shares of stock held in the treasury are deducted from the number of issued shares in the determination of the number of outstanding shares.
• C)Common stockholders have voting rights at annual stockholder meetings.
• D)Corporations are governed by their stockholders.

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Definitions:

False Light

A type of privacy tort that occurs when someone publicly attributes to an individual views or actions that are misleading or false, but not defamatory.

Defamation

The act of damaging someone's good reputation by making false or malicious statements in spoken (slander) or written (libel) form.

Tort Law

A segment of law that addresses, remedies, and compensates for civil wrongs not arising out of contractual obligations.

Economic Interests

The financial stakes or advantages that individuals or organizations seek to achieve, which influence their decisions and behaviors in economic contexts.