In the ownership structure of joint stock company, the following is correct;
In the ownership structure of joint stock company, the following is correct;
- A) Ordinary shareholders are stronger than preferential shareholders
- B) Preferential shareholders are stronger than ordinary shareholders
- C) Ordinary shareholders are settled first in case of company
- D) Ordinary and preferential shareholders are perpetual rivals
Correct Answer: A) Ordinary shareholders are stronger than preferential shareholders
Explanation
This Economics question is asking about the ownership structure of a joint stock company. The question is asking which statement is correct. There are four options to choose from.
Option A states that ordinary shareholders are stronger than preferential shareholders, and this is the correct answer.
Option B says that preferential shareholders are stronger than ordinary shareholders, but this is not correct.
Option C states that ordinary shareholders are settled first in case of the company's liquidation. This statement is not entirely accurate as both types of shareholders will be settled in accordance with the company's Articles of Association.
Option D says that ordinary and preferential shareholders are perpetual rivals, but this statement is not correct either.
In summary, the correct answer to this question is that ordinary shareholders are stronger than preferential shareholders in the ownership structure of a joint stock company. This means that ordinary shareholders have more power and influence in decision-making compared to preferential shareholders.