Which of the Following Statements Is True About Common Stock

question 50

Multiple Choice

Which of the following statements is true about common stock?

• A) Common stock is considered to have a fixed maturity.
• B) Owners of common stock are guaranteed dividend payment by the firm.
• C) Owners of common stock have the lowest-priority claim on the firm's assets in the event of bankruptcy.
• D) Common-stock holders have unlimited liability toward the obligations of the corporation.

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