Which of the following is a true statement?

Question

Quizplus · Accepted Answer

Stockholders are entitled to a proportionate share of any remaining assets after the corporation pays its debts and liquidates. This is known as residual claim. A is false because dividends are not guaranteed and depend on the corporation's profitability and board decisions. C is false because it is the board of directors who authorize business contracts, not stockholders. D is false because stockholders can vote through proxy, which allows them to vote without being physically present at the annual meeting.

Which of the Following Is a True Statement