Common shareholders have the right to:
A) a claim on assets before creditors.
B) vote for members of the board of directors.
C) a claim on income before preferred shareholders.
D) buy any preferred shares when issued before the public offering of these shares.

Question

Quizplus · Accepted Answer

Common shareholders have the right to vote for members of the board of directors, which is a fundamental aspect of their ownership rights. They do not have priority over creditors or preferred shareholders in claims on assets or income, nor do they automatically have preemptive rights to buy new issues of preferred shares before the public.

Common Shareholders Have the Right To