Companies Can Issue Different Classes of Common Stock

question 23

Multiple Choice

Companies can issue different classes of common stock.Which of the following statements concerning stock classes is CORRECT?

• A) All common stocks fall into one of three classes: A,B,and C.
• B) All common stocks,regardless of class,must have the same voting rights.
• C) All firms have several classes of common stock.
• D) All common stock,regardless of class,must pay the same dividend.
• E) Some class or classes of common stock are entitled to more votes per share than other classes.

---

Definitions:

Disadvantages

Disadvantages refer to the unfavorable or negative aspects of a particular situation, decision, or solution.

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability protection.

Business Conducting

The practices, strategies, and ethical standards employed by a company in its daily operations and decision-making processes.

Advantages

Positive aspects or benefits that contribute to superior performance or competitive edge.