Asked by
Melissa Fernandez
on Dec 20, 2024Verified
Common stock holders:
A) have one vote in the election of how the company operates.
B) are last in line to receive income.
C) receive income before preferred stockholders.
D) are guaranteed to get paid when the company fails.
Common Stock Holders
Individuals or entities that own a share of common stock in a corporation, granting them voting rights and a portion of the company’s profits.
Preferred Stockholders
Preferred stockholders are investors who own preferred shares in a company, which often entitle them to fixed dividends and priority over common stockholders in asset liquidation.
- Acquire an understanding of preemptive rights alongside the prioritization of payments in business entities.
- Understand the role of stockholders in corporate governance and decision-making.
Verified Answer
SB
Learning Objectives
- Acquire an understanding of preemptive rights alongside the prioritization of payments in business entities.
- Understand the role of stockholders in corporate governance and decision-making.