87.1k views
2 votes
The following are ways of enforcing payment of unpaid subscription, which is the exception

A. Filing a court action to recover unpaid subscription
B. Sale at public auction of delinquent stocks
C. Denying delinquent stock cash dividends
D. Denying delinquent stock the right to vote and voted upon

User Umbro
by
9.0k points

1 Answer

1 vote

Final answer:

The exception among the methods listed is denying delinquent stock the right to vote and be voted upon; this does not enforce payment directly but is a sanction for non-payment. Filing a court action, selling delinquent stock at public auction, and denying cash dividends are direct methods to enforce payment of unpaid stock subscriptions. The correct option is D.

Step-by-step explanation:

The student's question pertains to the various methods an organization can enforce payment of unpaid subscription. Among the options provided, the exception that does not enforce payment, but rather is a consequence of non-payment, is Denying delinquent stock the right to vote and to be voted upon.

This is not a direct method to enforce payment but a repercussion of failing to pay. On the other hand, filing a court action to recover unpaid subscriptions, sale at public auction of delinquent stocks, and denying cash dividends to delinquent stock are direct enforcement actions that can be taken by a company.

When a firm issues stock, it gains financial capital without the responsibility to repay, but this comes with regulatory compliance and accountability to shareholders. If these stocks become delinquent due to non-payment of the subscription amount, the firm has certain measures available to address the issue.

User MarcoL
by
8.6k points