Which of the following statements regarding the rights of common stockholders is true? Group of answer...
Which of the following statements regarding the rights of common stockholders is true?
Group of answer choices
A firmʹs common stockholders enjoy unlimited upside potential with limited liability
A firmʹs common stockholders, along with the preferred shareholders (if any), elect the members of the board of directors
A firmʹs common stockholders collectively, albeit indirectly, own all the firmʹs assets
A firmʹs common stockholders vote to establish the dividend payout ratio for the firm
Homework Answers
Please find below the solution.. let me know if you need any clarification..
correct answer is option : A firmʹs common stockholders enjoy unlimited upside potential with limited liability
Common stockholder enjoy upside if the company make super normal profit and at the same time their liability is limited to the extent of paid up value of share capital.
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