Question

What is NOT a characteristic of a shareholder?

1-Expects to receive dividends.
2-Expects to receive a capital gain on their investment.
3-Expects to receive interest.
4-Expects to have rights as defined in the corporation's charter and bylaws.

Answer 1

A shareholder does not typically expect to receive interest, as they benefit from dividends and potential capital gains on their shares. Shareholders also have rights as set out in the corporation's governing documents.

Step-by-step explanation:

The characteristic that is NOT typical of a shareholder is the expectation to receive interest. Generally, shareholders are individuals or entities that own shares in a corporation and are thus part owners of the company. They may expect to receive dividends, which are payments made out of a company's profits to its shareholders. Shareholders may also expect to receive a capital gain, which is the profit from selling a share when its price is higher than the purchase price. Lastly, shareholders have rights as defined in the corporation's charter and bylaws, which can include voting rights on corporate decisions and actions.