Which One of the Following Statements Is NOT True About

question 48

Multiple Choice

Which one of the following statements is NOT true about common stock?

• A) Common-stock holders have the right to vote on the selection of the board of directors for the firm.
• B) Common stock is considered to have no fixed maturity.
• C) Owners of common stock are guaranteed dividend payments by the firm.
• D) Common-stock holders have limited liability.

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Definitions:

Corporate Charitable Giving

The donation of funds, goods, or services to charitable causes by corporations to support various social, environmental, or community objectives.

Social Responsibility Strategy

An approach by a company to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Corporate Misconduct

Unethical or illegal actions taken by a company or its employees, which can include fraud, insider trading, and environmental violations among others.

Mid-level Managers

Managers who report to top-level executives and oversee the activities of first-level managers, responsible for implementing organizational policies and procedures.