Which of the Following Is Not a True Statement

question 91

Multiple Choice

Which of the following is not a true statement?

• A) Common stockholders have a residual claim to income.
• B) Bondholders may force a corporation into bankruptcy for failure to make interest payments.
• C) Common stockholders are legally entitled to some dividend.
• D) A minority interest can still elect members to the Board of Directors under cumulative voting even though someone else owns 51% of the stock.

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Definitions:

Overhead Costs

General business expenses not directly tied to the production of a product or service, such as rent, utilities, and administrative costs.

Functional Resources

Assets or inputs that are practical and directly contribute to the production process or service delivery in organizations.

Internal Competition

Describes a situation within an organization where employees or departments compete against each other for recognition, promotion, or rewards, which can either be motivating or destructive.

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from its competitors, targeting specific market niches.