Asked by Jordan Wagner on Jul 05, 2024
Verified
Which of the following is not a right of owners of common shares?
A) Residual assets in liquidation.
B) Vote on proposed mergers.
C) Vote for company directors.
D) Share in company profits.
E) Obtain past dividends not paid.
Common Shares
Equity securities representing ownership in a company, entitling the holder to vote on corporate matters and share in the company’s profits.
Residual Assets
Assets that remain after all liabilities have been settled, typically referring to what shareholders own in a company.
Proposed Mergers
Planned combinations of two or more companies' operations, assets, or ownership, typically aimed at achieving synergies, growth, or efficiencies.
- Familiarize oneself with the core aspects and rights relevant to common and preferred stocks.
- Comprehend the circumstances that may lead to a corporation defaulting or facing litigation over dividend disbursements.
Verified Answer
AW
Ayana WashingtonJul 09, 2024
Final Answer :
E
Explanation :
Common shareholders have the right to share in the profits of the company, usually through dividends, vote for the board of directors, and vote on matters like mergers. However, they do not have the right to obtain past dividends not paid, as dividends are not guaranteed and are paid at the discretion of the company's board of directors.
Learning Objectives
- Familiarize oneself with the core aspects and rights relevant to common and preferred stocks.
- Comprehend the circumstances that may lead to a corporation defaulting or facing litigation over dividend disbursements.