In the context of small businesses, which of the following statements regarding common stock is true?

Question

Quizplus · Accepted Answer

Common stock represents ownership in the business, giving shareholders a claim on assets and earnings. While common stockholders may receive dividends, these are not guaranteed and not enforceable. Preferred stockholders are typically paid before common stockholders. Common stockholders generally have voting rights, unless the company has issued non-voting shares.

In the Context of Small Businesses, Which of the Following