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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 3
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Learn 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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