The owners of a corporation are its shareholders. If a corporation has only one class of shares, they typically are labeled common shares. Each of the following are ownership rights held by common shareholders, unless specifically withheld by agreement, except:
A) The right to vote on policy issues.
B) The right to share in profits when dividends are declared (in proportion to the percentage of shares owned by the shareholder).
C) The right to dividends equal to a stated rate time par (if dividends are paid).
D) The right to share in the distribution of any assets remaining at liquidation after other claims are satisfied.

Question

Quizplus · Accepted Answer

Dividends are not guaranteed and shareholders do not have an automatic right to receive them. They are typically declared by the board of directors and are based on the company's financial performance and other factors. Therefore, the right to receive dividends is not an ownership right that is always held by common shareholders.

The Owners of a Corporation Are Its Shareholders