Which One of the Following Is NOT a Stockholder's Right

question 109

Multiple Choice

Which one of the following is NOT a stockholder's right of ownership in a corporation?

• A)the right to participate in management by voting on matters that come before the stockholders
• B)the right to receive a proportionate share of the assets remaining after all liabilities are paid upon liquidation
• C)the right to maintain one's proportionate share of ownership in the corporation
• D)the right to decide if a dividend should be distributed

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' claim on the business.

Cash Consideration

The amount of cash that is paid or received during transactions, such as acquisitions or sales of assets.

Outstanding Shares

The total number of shares of a corporation that have been issued and are held by shareholders, excluding treasury shares.

Contributed Surplus

An account on a company's balance sheet representing the excess amount investors pay over the par value of the company's shares.