Asked by Trevor Debelak on May 04, 2024
Verified
Which one of the following is not an ownership right of a common shareholder?
A) to vote in the election of officers
B) to declare dividends on the common shares
C) to share in assets upon liquidation
D) to share in corporate net income
Common Shareholder
A common shareholder is an individual or entity that holds common stock in a corporation, granting them voting rights and a share in the company's profits through dividends.
Declare Dividends
The action by a company's board of directors to distribute a portion of the company’s earnings to its shareholders.
- Comprehend the qualities and rights connected with holding a corporation, involving liability issues, the possibility of share transfer, and the outcomes of share trades.
Verified Answer
CG
Chikke GowdaMay 06, 2024
Final Answer :
B
Explanation :
The right to declare dividends on the common shares is not an ownership right of a common shareholder; this decision is typically made by the company's board of directors.
Learning Objectives
- Comprehend the qualities and rights connected with holding a corporation, involving liability issues, the possibility of share transfer, and the outcomes of share trades.