Which of the Following Is Not a Reason to Hold

question 62

Multiple Choice

Which of the following is not a reason to hold stock?

• A)To receive payments on the firm's debt.
• B)To receive potential capital gains.
• C)To take part in the selection of the board of directors.
• D)To receive potential dividends.

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Definitions:

Operating Activities

Transactions and other events related to the primary business activities of an entity, such as sales and service provision.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenue.

Comparative Balance Sheets

Financial statements that present the financial position of a business at different points in time, side by side, to facilitate comparison.

Common Stock

A type of equity ownership in a corporation, representing a share of the company, typically with voting rights.