Which one of the following is not a basic right of an owner of common share?
A) Sharing in the responsibility of setting next year's budget.
B) Sharing in the distribution of assets of the corporation at liquidation.
C) Participation in the corporation by voting in shareholder meetings.
D) Participation in the profits of the corporation through dividends declared by the board of directors.

Question

Quizplus · Accepted Answer

While common shareholders have the right to participate in certain aspects of the corporation, such as voting in shareholder meetings and sharing in distribution of assets at liquidation, they do not typically have direct responsibility for setting the budget. The budget is generally prepared by management and approved by the board of directors, although shareholders may have the opportunity to vote on it. The basic rights of common shareholders include participation in the profits of the corporation through dividends declared by the board of directors, as well as various voting rights and a share in company assets if the company is liquidated.

Which One of the Following Is Not a Basic Right