Which of the following is a TRUE statement?
A) Stockholders are guaranteed annual dividends.
B) Stockholders receive their proportionate share of any assets remaining after the corporation pays its debts and liquidates.
C) Stockholders may authorize a business contract on behalf of the corporation.
D) Stockholders may vote only if they physically attend the annual stockholders' meeting.

Question

Quizplus · Accepted Answer

Stockholders, as owners of the corporation, are entitled to a proportionate share of any assets remaining after the corporation pays its debts and liquidates. This is known as residual ownership. Option A is false as stockholders are not guaranteed annual dividends. Option C is typically the responsibility of the officers or board of directors, not stockholders. Option D is false as proxy voting (voting remotely) is an option for stockholders who are unable to attend the meeting in person.

Which of the Following Is a TRUE Statement