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In her last lecture class for Introduction to Business, Janice…

January 10, 2024

In her last lecture class for Introduction to Business, Janice learned about the two types of stock issued by a corporation: common stock and preferred stock. Which of the following is incorrect regarding common stock and preferred stock?

A corporation’s board of directors must approve dividends on preferred stock.

Common stock represents the most basic form of corporate ownership.

Common stockholders have the first claim (after creditors) on assets if the corporation is dissolved.

The owners of preferred stock must receive their dividends before holders of common stock receive theirs

business, Business Law, class, Introduction, Janice.., lecture

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