Which of the following statements is false?

A) Common stockholders have a residual claim on assets in the event of liquidation.
B) Shares of stock held in the treasury are subtracted from the number of issued shares in the determination of the number of outstanding shares.
C) Common stockholders have voting rights at annual stockholder meetings.
D) Corporations are governed by their stockholders.

Residual Claim

A claim on a company's assets and income that is only payable after all other debts and liabilities have been settled.

Treasury

Refers to the government department responsible for managing the revenue, spending, and overall financial policies of a country. It can also refer to the corporate division dealing with financial and liquidity management in a company.

Voting Rights

The rights of shareholders to vote on corporate matters, such as electing the board of directors or approving corporate policies.