Principles of Finance - C708 module 11 quiz

Which statement accurately describes a shareholder's preemptive rights? The right to claim a company's remaining assets after a liquidation The right to purchase new shares issued by the company The right to retain their proportional ownership in a company should it issue another stock offering The right to vote on directors

The right to retain their proportional ownership in a company should it issue another stock offering

Which answer is generally not a right granted to owners of preferred shares? Variable dividend amounts Convertibility to common shares Preference with regards to receiving dividends Callability

Variable dividend amounts

Which feature is generally not associated with preferred stock? Convertibility to common stock Callability at the option of the corporation Voting rights Preference in dividends

Voting rights

Which answer is not a true statement regarding voting rights? Shareholders generally get to vote on who is part of the corporate Board of Directors. Preferred stock generally does not carry voting rights. Corporate shareholders are prohibited from casting their vote online. Generally each share of common stock equals one vote.

Corporate shareholders are prohibited from casting their vote online.

Which answer is not a benefit associated with common stock? The right to vote on corporate objectives and policy Preemptive rights The right to vote on who gets to sit on the company's Board of Directors Guaranteed dividends

Guaranteed dividends