Which of the following is a control right?

Question

Quizplus · Accepted Answer

The right of shareholders to elect the members of the board of directors is a control right because it gives shareholders the power to influence the management and decision-making of the company. Control rights refer to the rights that allow an investor to influence the decision-making process of a company. The right of shareholders to elect the members of the board of directors is a control right because it enables shareholders to have a say in the selection of the individuals who make important corporate decisions. The right of bondholders to receive interest payments and the right of shareholders to receive the liquidated value of the assets of the firm are not control rights but rather financial rights.

Which of the Following Is a Control Right