Common stockholders are guaranteed dividends.

Name: Common stockholders are guaranteed dividends.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Common stockholders are not guaranteed dividends. Dividends are only distributed if the company's board of directors decides to make such payments and has available funds to do so. Common stockholders are only entitled to receive a portion of profits, if any, after all liabilities and other obligations have been paid.

Common Stockholders Are Guaranteed Dividends