Which of the following statements is false?
A)Common stockholders have a residual claim on assets in the event of liquidation.
B)Shares of stock held in the treasury are subtracted from the number of issued shares in the determination of the number of outstanding shares.
C)Common stockholders have voting rights at annual stockholder meetings.
D)Corporations are governed by their stockholders.

Question

Quizplus · Accepted Answer

Corporations are actually governed by a board of directors, who are elected by the stockholders. However, the stockholders do have the power to vote on major decisions such as changes to the corporation's bylaws, mergers and acquisitions, and the election of new directors.

Which of the Following Statements Is False