Which of the following statements is true?
A) Preferred shares have a volatile market value therefore, they are a more risky investment than common shares.
B) Common shares have a dividend rate fixed by the share contract.
C) Corporations are not always considered to be a separate legal entity.
D) Transfer of ownership is easy with a corporation.

Question

Quizplus · Accepted Answer

Transfer of ownership is easy with a corporation because ownership is represented by shares of stock which can be easily bought, sold or transferred. A) is incorrect because preferred shares are generally less volatile than common shares. B) is incorrect because dividend rate of common shares is not fixed and may fluctuate. C) is incorrect because corporations are considered separate legal entities from their owners.

Which of the Following Statements Is True