If a corporation that has only one class of shares,or if there is more than one class,the class that has no preference over the other classes of shares,is called
A)Preferred shares
B)Common shares
C)Convertible preferred shares
D)Cumulative preferred shares
E)Participating preferred shares

Question

Quizplus · Accepted Answer

Common shares are the class of shares that have no preference over any other class of shares in a corporation. Preferred shares have priority over common shares in terms of dividends and liquidation preferences, while convertible preferred shares can be converted into common shares and participating preferred shares have the right to receive additional dividends if the company exceeds certain profit thresholds. Cumulative preferred shares have the right to accumulate unpaid dividends if the company does not make dividend payments in a certain period.

If a Corporation That Has Only One Class of Shares,or