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.

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Definitions:

Healthy

A state characterized by physical, mental, and social well-being, not merely the absence of disease or infirmity.

Genocide

The ultimate expression of prejudice by exterminating an entire social group.

Exterminating

The act of completely removing or eradicating something, often used in contexts of pests or dangerous elements.

Prejudice

Preconceived opinions or judgments about individuals or groups without sufficient knowledge, often rooted in stereotypes, leading to unfair treatment.