Question

Which of the following most accurately describes one of the powers of stockholders? A. Stockholders manage the daily business of a company. B. Stockholders can sell their shares in the company at any time. C. Stockholders are given discounts on the company's products. D. Stockholders determine the size of dividends paid to investors.

Answer 1

Stockholders have the power to determine the size of dividends paid to investors.

Step-by-step explanation:

One of the powers of stockholders is that they determine the size of dividends paid to investors. Dividends are a portion of a company's profits that are distributed to shareholders as a return on their investment. The board of directors, who are elected by the shareholders, decide on the amount of dividends to be paid.

Answer 2

Stockholders can sell their shares in the company at any time, which accurately reflects one of their core powers.

Step-by-step explanation:

The stockholders of a company have several powers and rights pertaining to their ownership in the company. Of the options provided, the one that most accurately describes one of the powers of stockholders is B: Stockholders can sell their shares in the company at any time. Stockholders also participate in the governance of the company by voting for the board of directors, who are responsible for the overarching strategic decisions and in turn appoint the executives to manage the day-to-day operations. However, stockholders do not directly manage the daily business of the company, determine dividend sizes, or are automatically given discounts on the company's products.