Which of the following is a basic right of stockholders?
A) Stockholders may sell their stock back to the company if they wish.
B) Stockholders may authorize a business contract on behalf of the corporation.
C) Stockholders may receive dividends from corporate earnings.
D) Stockholders may determine the issue price of common stock.

Question

Quizplus · Accepted Answer

Stockholders have a basic right to receive dividends from corporate earnings. Dividends are a distribution of a portion of a company's earnings to its shareholders, typically in the form of cash payments or additional shares of stock. However, not all companies choose to pay dividends, and the amount of dividends can vary based on the company's performance and other factors.

Options A, B, and D are not basic rights of stockholders. Stockholders are not guaranteed the right to sell their stock back to the company, authorize business contracts on behalf of the corporation, or determine the issue price of common stock. These decisions are typically made by the company's management or board of directors.

Which of the Following Is a Basic Right of Stockholders