Smooth Corp.has both Class A and Class B shares of common stock.The difference between the two classes of stock is most likely related to
A)Class A stock being worth more than Class B stock
B)Class A shareholders having greater voting rights than Class B shareholders
C)Class A shareholders receiving dividends while Class B shareholders do not
D)Class A shareholders having better preemptive rights than Class B shareholders

Question

Quizplus · Accepted Answer

The difference between classes of stock is often related to voting rights. Class A shares typically have greater voting power than Class B shares. The other options do not consistently apply to the differences between classes of stock.