The owner of each share of a corporation's stock:
A)has the right to cast one vote for electing its board of directors.
B)is entitled to 1 percent of the total profit earned by the firm.
C)has the right to participate in its overall supervision.
D)is liable for 1 percent of the total loss incurred by the company.

Question

Quizplus · Accepted Answer

A shareholder has the right to cast one vote for electing the board of directors, which is one of the primary functions of shareholder control in a corporation. The other options are not true - shareholders do not necessarily receive a percentage of the profit, nor do they have a direct right to participate in the overall supervision of the company. Additionally, shareholders are not personally liable for any losses incurred by the company beyond the value of their investment.

The Owner of Each Share of a Corporation's Stock