Which of the Following Statements Is Correct

question 13

Multiple Choice

Which of the following statements is correct?

• A)Common shares have priority over preferred shares.
• B)All issued shares are eligible to vote for the board of directors.
• C)The number of shared issued > number outstanding > number authorized.
• D)A share with cumulative dividends must be a preferred share.

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Definitions:

Consumer Law

Statutes, agency rules, and judicial decisions protecting consumers of goods and services.

Statutes

Laws or acts enacted by the legislative branch of a government.

Agency Rules

Regulations and guidelines established by governmental agencies to govern specific areas of administrative law and public policy.

Common Law

A legal system based on custom, court rulings, and past legal precedents rather than on written laws passed by a legislative body.