Question

Stockholders are entitled to

(a) repayment of stock value.
(b) a position in the company.
(c) interest.
(d) vote(s) for the board of directors.
(e) profit sharing.

Answer 1

Stockholders are entitled to vote for the board of directors and profit sharing. Option d and e are correct.

Step-by-step explanation:

Stockholders are entitled to vote(s) for the board of directors and profit sharing.

When a company sells stock and becomes a public company, the shareholders, who own the stock, have the right to vote for the board of directors. The more shares of stock a shareholder owns, the more votes they are entitled to cast. Stockholders also have the potential to receive profit sharing in the form of dividends if the company is successful and profitable.