Question

2. Types of common stock Aa Aa True or False: In som e cases, individuals who start a business have special voting rights that help them exercise more control over the firm. They own a special class of stock called founders' shares. O True OFalse Consider this case: Ford has a dual-class stock structure. The Ford family controls 40 % of voting power with around 4 % of total equity in the firm. Two Sides of Dual-Class Shares, on Investopedia Articles, http://www.investopedia.com/articles/fundamental/04/092 204 asp#axzz 1 SftwYS K8. Source: "The Based on this example, which of the following statements is true? O Classified shares have super-voting rights, which give more control to a certain class of investors. Classified shares are not issued with the purpose of providing super-voting rights to a certain class of investors. Fsh Player W 32,0,0,192 03 3.34 12004-2016 Apa All ghts neserved 2013 Cengage Leaming exspt as notad Al nights rsrved Grade It Now Save &Continue

Answer 1

True, individuals who start a business have a special voting right and restricted dividends for a specified number of years that help them exercise more control over the firm.

Classified shares give a certain class special voting rights called super-voting rights in which each share in the class has more votes per share than shares in other classes.

Thus the answer is A)