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To which of the following rights is a stockholder of a public corporation entitled?
The right to have annual dividends declared and paid.
The right to vote for the election of officers.
The right to a reasonable inspection of corporate records.
The right to have the corporation issue a new class of stock.
The requirement is to identify the right of the shareholder. Shareholders have the right to inspect the corporate records if done in good faith for a proper purpose. Answer 1 is incorrect because shareholders do not have a right to dividends. It is the decision of the board of directors whether or not to declare dividends. Answer (2) is incorrect because although at least one class of stock must have voting rights to elect the board of directors, the officers may be selected by the board of directors. Answer (4) is incorrect because a shareholder cannot force an issuance of a new class of stock.
By: Srishti Gupta ProfileResourcesReport error
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