Which one of the following statements is NOT true about ordinary shares?
A) Ordinary shareholders have the right to vote on the selection of the board of directors for the company.
B) Ordinary shares are considered to have no fixed maturity.
C) Owners of ordinary shares are guaranteed dividend payments by the company.
D) Ordinary shareholders have limited liability.

Question

Quizplus · Accepted Answer

Unlike preferred shares, ordinary shares do not guarantee dividend payments to their owners. The payment of dividends is dependent on the company's profitability and its decision to distribute profits to shareholders. Therefore, statement C is not true.

Which One of the Following Statements Is NOT True About