Common shares
A)Represent residual equity in a corporation
B)Always represent total contributed capital
C)Allow shareholders to bind the corporation to contracts because they share in ownership
D)Make shareholders liable for acts of the corporation because they share in ownership
E)Are usually redeemable

Question

Quizplus · Accepted Answer

Common shares represent residual equity in a corporation, meaning that they are the ownership interest in the company after all other claims have been satisfied. They do not always represent total contributed capital and do not allow shareholders to bind the corporation to contracts or make them liable for acts of the corporation. They are also typically not redeemable.

Common Shares