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Basic Question 7 of 9
True or False? Company A has two classes of shares: preferred shares and common shares. Preferred shareholders don't have any voting rights. The ownership structure of this company indicates a weak corporate governance practice.
User Contributed Comments 4
| User | Comment |
|---|---|
| gulfa99 | the probability of picking the right answer is 50:50. I was not lucky |
| papajeff | If not knowing the difference between common and preferred shares is unlucky.....yeah, tough break. |
| gill15 | if this Q actually required 50:50 then I would agree with you... You would not be elected by the nomination board... |
| davidkhang | LOL... this was too funny not to comment. |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe the principal-agent relationship and conflicts that may arise between stakeholder groups
CFA® 2025 Level I Curriculum, Volume 2, Module 3.