Which of the Following Is NOT True About Common Stockholders

question 12

Multiple Choice

Which of the following is NOT true about common stockholders and preferred stockholders?

• A) Preferred stockholders receive a fixed dividend each year.
• B) Common stockholders vote to elect the members of the board of directors.
• C) Preferred stockholders have a more senior claim on the firm's assets in the event of bankruptcy.
• D) Preferred stockholders are considered the firm's ultimate owners.

---

Definitions:

American Economy

The complex system of production, distribution, and consumption of goods and services within the United States, characterized by a mixed economy with both private and public enterprises.

Concepts of Time

The various ways in which societies understand and organize time, often influenced by cultural, religious, and scientific ideas.

Economic Transformation

The comprehensive change in the structure and composition of an economy, often driven by technological innovation, shifts in industries, and changes in consumer preferences.

Reconstruction

The period following the Civil War in which the United States endeavored to reintegrate Southern states from the Confederacy and 4 million newly freed African Americans into the social, political, and economic life of the country.