A parent might attempt to resolve a transfer of ownership by giving children active in the firm's management _____ stock and giving nonactive children _____ stock.
A) preferred, common
B) growth, speculative
C) common, preferred
D) more, less

Question

Quizplus · Accepted Answer

Common stock typically carries voting rights and may be more appealing to children active in the firm's management, allowing them to have a say in business operations. Preferred stock, on the other hand, often does not carry voting rights but may offer dividends and priority in asset distribution, which might be more suitable for nonactive children.

A Parent Might Attempt to Resolve a Transfer of Ownership