Question

The rights of a common stockholder do not include the right: Multiple Choice To vote for directors. To withdraw a share of corporate net assets proportionate to the person's stockholdings. To receive a proportionate share of corporate assets upon liquidation, after creditors have been paid. To share in profits when the board of directors declares a dividend.

Answer 1

The rights of common shareholder do not include :

1. To withdraw a share of corporate net assets proportionate to the person's stockholding as common stockholders are only entitled to receive amount upon the liquidation of te corporations or else they can sell their shares in open market and can receive their worth but cannot claim their share of corporate assets.

2. To receive a proportionate share of corporate assets upon liquidation, after creditors have been paid, as they are the last one to be paid because after creditors have been paid off , then preference shareholders of the corporation need to be paid first before common shareholders are being paid off.