Alligood Corporation Has Two Classes of Common Stock Outstanding

question 32

Multiple Choice

Alligood Corporation has two classes of common stock outstanding. The Class A and Class B common stock give the shareholders identical rights and interests in the profits and assets of the corporation. Class A stock has one vote per share. Class B stock is nonvoting. Alligood Corporation may

• A)not make the S election due to different voting rights.
• B)make the S election once the Class B is retired.
• C)make the S election at any time.
• D)not make the S election due to two classes of stock.

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Definitions:

Dependent Variable

The variable in an experiment that is observed and measured for changes, which are thought to be influenced by the manipulation of the independent variable.

Interaction

In research, this refers to the effect that variables have on each other when combined.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Manipulation Check

A measure used to determine whether the manipulations in an experiment have the intended effect on the subjects.