Which of the Following Statements Is Incorrect

question 20

Multiple Choice

Which of the following statements is incorrect?

• A) Each share in a company carries a right to share in the assets on the liquidation of the company;
• B) Each share in a company carries a right to share proportionately in all new share issues of a company;
• C) A share represents an ownership right in a company;
• D) Each share in a company carries a right to vote for directors of the company.

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Definitions:

Benefactors

Benefactors are individuals, organizations, or other entities that provide financial or other types of support to individuals, organizations, or causes.

Corporate Form

A business structure where the entity is distinct from its owners, providing limited liability protection, ease of transferring ownership, and potential for growth.

Legal Entities

Organizations that have legal rights and obligations, including the capacity to enter into contracts and own property, distinct from their members.

Partnerships

A legal arrangement where two or more individuals share ownership of a business, including its profits, losses, and responsibilities.