The stock holder who does not have any voting rights in the corporation is considered as ____________?
Correct answer: B. preferred stockholder
- A. sub class voter
- B. preferred stockholder
- C. common stock holder
- D. cumulative voter
Explanation
Preferred stock commonly carries priority dividends and liquidation claims but no ordinary voting rights. Common shareholders normally have voting rights, although a company's articles may create exceptions.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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