Vaughan Company has one class of capital shares issued.It is which of the following?
A)Common shares.
B)Preferred shares,voting.
C)Preferred shares,non cumulative.
D)Common shares,nonvoting.

Question

Quizplus · Accepted Answer

The fact that the company has only one class of capital shares issued suggests that they are most likely common shares, which are the most basic type of equity capital. Preferred shares, on the other hand, typically offer different rights and preferences than common shares, such as priority on dividends or voting rights. Therefore, options B and C can be ruled out. While common shares can be either voting or nonvoting, there is no indication given in this question as to whether or not Vaughan Company's shares have voting rights. Nonetheless, the question only asks which type of shares is most likely, so the answer is A) Common shares.

Vaughan Company Has One Class of Capital Shares Issued