Which of the Statements Below Is FALSE

question 91

Multiple Choice

Which of the statements below is FALSE?

• A)For common stock,there is no maturity date and the promised cash flow is not stated on the asset,but is determined at a later date by the board of directors.
• B)An equity claim is a claim to all the assets and cash flows of a company once debt claimants have been paid.
• C)Like a bond,common stock entitles the owner to some of the cash flow of a company.
• D)Bond ownership gives the right to participate in the management of the company.

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