Which Statement About Common Shareholders Is Incorrect

question 19

Multiple Choice

Which statement about common shareholders is incorrect?

• A) Shareholders only have a residual claim.
• B) Shareholders have precedence over all other claimholders in the case of bankruptcy.
• C) Shareholders have a voting right.
• D) Shareholders are the ultimate owners of a corporation.

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Definitions:

Output

The amount of goods or services produced by a firm, industry, or economy.

Substitutes For Leadership

Factors in the work setting that direct work efforts without the involvement of a leader.

Work Setting

The physical and social environment in which individuals perform their job duties.

People Involved

Refers to the individuals or groups participating in or affected by a particular activity, process, or decision.