Which of the following is true of stockholders?
A)Stockholders have a right to access confidential information about the business before the information is disseminated to the public.
B)Stockholders can claim a portion of the corporate assets after the corporation pays it debts in the event the company is liquidated.
C)Stockholders may authorize a business contract on behalf of the corporation.
D)Stockholders may determine at what price the company issues stock.

Question

Quizplus · Accepted Answer

Stockholders have limited rights and responsibilities. One of their main rights is to claim a portion of the corporate assets after the corporation pays its debts in the event the company is liquidated. This is known as residual ownership. However, stockholders do not have the right to access confidential information before it is made public, authorize business contracts, or determine the price at which the company issues stock. These tasks are reserved for the board of directors and executive management team.

Which of the Following Is True of Stockholders