Which One of the Following Statements Is NOT True About

question 78

Multiple Choice

Which one of the following statements is NOT true about ordinary shares?

• A) Ordinary shareholders have the right to vote on the selection of the board of directors for the company.
• B) Ordinary shares are considered to have no fixed maturity.
• C) Owners of ordinary shares are guaranteed dividend payments by the company.
• D) Ordinary shareholders have limited liability.

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Definitions:

Adjusting Journal Entry

An accounting record made at the end of a period to allocate income and expenditures to the appropriate accounting period.