Which of the Following Represents One of the Basic Rights

question 67

Multiple Choice

Which of the following represents one of the basic rights of stockholders?

• A) Stockholders may sell their stock back to the company if they wish.
• B) Stockholders can claim a portion of the corporate assets in the event the company is liquidated.
• C) Stockholders may authorize a business contract on behalf of the corporation.
• D) Stockholders may determine at what price the company issues stock.

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Definitions:

Required Return

The minimum annual percentage yield that an investor expects or requires from an investment.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Investment

The allocation of resources, usually money, in expectation of achieving a future return or profit.

Annual Dividend

The total amount of dividends a company pays out to its shareholders each year, usually quoted as an amount per share.