Which of the following is not a true statement?
A) Common stockholders have a residual claim to income.
B) Bondholders may force a corporation into bankruptcy for failure to make interest payments.
C) Common stockholders are legally entitled to some dividend.
D) A minority interest can still elect members to the Board of Directors under cumulative voting even though someone else owns 51% of the stock.

Question

Quizplus · Accepted Answer

Common stockholders are not legally entitled to any dividend. The decision to pay dividends rests solely with the Board of Directors.

Which of the Following Is Not a True Statement