Which one of the following is not an ownership right of a stockholder in a corporation? A) To declare dividends on the common stock. B) To share in assets upon liquidation. C) To share in corporate earnings. D) To vote in the election of directors.
Business · High School · Thu Feb 04 2021
Answered on
A) To declare dividends on the common stock.
Stockholders, also known as shareholders, are the owners of a corporation's shares of stock. While they do have several important rights, declaring dividends is not one of them. The right to declare dividends actually belongs to the corporation's board of directors. The board decides if and when dividends will be paid and in what amount, based on the company's financial health and other strategic considerations.