Ask Question
2 March, 07:43

Which one of the following is not an ownership right of a stockholder in a corporation?

a. To vote in the election of directors.

b. To share in assets upon liquidation.

c. To share in corporate earnings.

d. To declare dividends on the common stock.

+2
Answers (1)
  1. 2 March, 07:52
    0
    The correct answer is option d.

    Explanation:

    The common stockholders in a corporation get voting generally, one vote per share held. They can vote in the process of electing the board of directors who oversee the management of the corporation.

    Thus these stockholders up to a certain degree have the ability to control management.

    They get to share corporate earnings of the business in the form of dividends. But during the time of liquidation, the common stockholders are paid at the very last. The preference is to pay creditors, bondholders, and preferred shareholders first.

    Though the dividends on the common stock are declared by the management or the board of directors and not the shareholders.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which one of the following is not an ownership right of a stockholder in a corporation? a. To vote in the election of directors. b. To ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers