Shareholders of common stock have certain rights and benefits, including the right to receive dividends, the right to vote on corporate issues, the right to limited liability, and the right to ultimate distribution of assets in the event of liquidation.

Shareholders of common stock have certain rights and benefits, including the right to receive dividends, the right to vote on corporate issues, the right to limited liability, and the right to ultimate distribution of assets in the event of liquidation.

True

False

A company has 2 choices with regard to the additional earnings or cash flow: the additional cash can be reinvested into the business in the form of new or existing projects, or can be paid as dividends to the shareholders of the corporation.

A company has 2 choices with regard to the additional earnings or cash flow: the additional cash can be reinvested into the business in the form of new or existing projects, or can be paid as dividends to the shareholders of the corporation.

True

False

Growth stocks are stocks issued by companies that have sales, earnings, and market share growing at higher rates than those of average companies or the general economy.

Growth stocks are stocks issued by companies that have sales, earnings, and market share growing at higher rates than those of average companies or the general economy.

True

False