The Purpose of Nonvoting Common Stock Is to

question 104

Multiple Choice

The purpose of nonvoting common stock is to

• A) limit the voting power of the management.
• B) allow the minority interest to elect one director.
• C) raise capital without giving up any voting rights.
• D) give preference on distribution of earnings to those shareholders who own the stock.

---

Definitions:

Fresh Fish

Refers to fish that have been recently caught and have not been frozen or preserved, ensuring maximum freshness and quality.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Fresh Fish

Fish that have been recently caught and have not been frozen or processed.