Holders of common stock have ownership rights? a. True. b. False.
Question:
Holders of common stock have ownership rights?
a. True.
b. False.
Common Stocks:
Common stock is a type of security that a corporation can sell to the general public for additional funds. Apart from bonds, the firm will not necessitate to repay the principal to common shareholders.
Answer and Explanation: 1
The statement is TRUE.
Shareholders are investors who are holding a firm's stocks. And by laws, the firm's shares represent the business ownership, which means that shareholders are owners of the business.
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Types of Business Organizations: Advantages & Disadvantages
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Chapter 6 / Lesson 3Learn to define "type of business" and study examples. Explore the three major types of business organization: sole proprietorship, partnership, and corporation.
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