State True/False

False

Common stockholders are given preference over preferred stockholders to the assets of the corporation should it cease operations

True

Common stockholders have the right to vote and elect the board of directors.

False

If the corporation issues only one class of capital stock, it is called preferred stock.

True

Preferred stockholders are entitled to receive dividends before common stockholders.

False

A common stockholder may send a provost, which gives the stockholder's voting rights to someone else.

True

When a corporation receives permission from the state to operate, it is authorized to sell a certain number of shares of stock to investors; the maximum number of which is called its authorized capital stock

False

Before a cash dividend can be declared, the corporation should have a sufficient amount of cash available to pay the dividend, but it does not matter what the balance of Retained Earnings is before the declaration.

False

Each share of common stock is entitled to two votes