Which of the Following Is True of a Common Stock

question 112

Multiple Choice

Which of the following is true of a common stock?

• A) It gives voting rights which permit determination of the amount of dividend receivable.
• B) It gives claims on income and assets which are superior to the claims of creditors of the firm.
• C) Dividends on common stock are fully tax-deductible.
• D) There is no fixed dividend payment obligation for the company.

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Definitions:

Durable Goods

Items with a long life span, such as appliances and automobiles, that are used over time rather than consumed quickly.

Intermediate Good

A product utilized in the manufacture of a final good or finished product, not sold directly to end consumers.

Local Nursery

A place or business that specializes in growing and selling plants and trees for gardening and landscaping within a local area.

Grandma

A familial term used to refer to the mother of one's parent, often associated with elder care, wisdom, and family traditions.