Which of the Following Is True of Common Stock

question 21

Multiple Choice

Which of the following is true of common stock ?

• A) It is often considered quasi-debt due to fixed payment obligation.
• B) It has less restrictive covenants than debt.
• C) It gives the holder voting rights which permit selection of the firm's directors.
• D) Its holders have priority over preferred stockholders in the event of liquidation of assets.

---

Definitions:

Control

The power to influence or direct people's behavior or the course of events.

Overseas Operations

Business activities or functions that are conducted in foreign countries, away from the company's home country.