Which of the Following Statements Is True with Regard to Equity

question 100

Multiple Choice

Which of the following statements is true with regard to equity capital?

• A)The number of shares actually in the hands of stockholders are called outstanding shares.
• B)It is unusual for corporations to have more than one class of stock outstanding at any point in time.
• C)Preferred stock represents the shares of stock that have been permanently retired.
• D)Outstanding shares represent the maximum number of shares that can be issued by a corporation.

---

Definitions:

Miniature Adults

An outdated concept regarding children as small adults capable of taking on adult responsibilities and rational thinking.

Clean Slates

The concept or condition of having a fresh start or beginning anew, often without any record of prior faults or mistakes.

Innately Good

The belief that humans are born with a natural inclination towards goodness and morality.

Jean-Jacques Rousseau

An 18th-century philosopher known for his contributions to political philosophy, education, and literature, emphasizing natural human goodness.