Firms May Not Issue Equity Interests with Different Rights, Such

question 187

True/False

Firms may not issue equity interests with different rights, such as one class of common stock with 10 votes per share and another class of common stock with one vote per share.

---

Definitions:

Inventory

The total amount of goods and materials held by a company in stock, ready for sale or production.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the upcoming fiscal year.

Days' Sales In Inventory

An indicator that reflects the average number of days a company requires to convert its inventory into sales.

Inventory Ratio

A financial metric that indicates how many times a company's inventory is sold and then replaced over a specific period.