Question

Which sentences correctly describe the entitlements of an equity shareholder?

Amy has bought equity shares of an advertising company. After five years, the management is undergoing change due to the retirement of one
of the board of directors. Amy attends the meeting to elect a new member in the board of directors. She is happy that she receives a fixed
dividend every year even though the company is not doing well​

Answer 1

PLATO i got 5/5

Step-by-step explanation:

Amy attends the meeting to elect a new member in the board of directors.

Answer 2

Amy attends the meeting to elect a new member in the board of directors. She is happy that she receives a fixed dividend every year even though the company is not doing well​

Amy has bought equity shares of an advertising company

Step-by-step explanation:

Amy attends the meeting to elect a new member in the board of directors. She is happy that she receives a fixed dividend every year even though the company is not doing well​.

Common shareholders have a right to elect new board members if they want to. They are in a position to influence who should hold certain managerial positions and who should not. They also have rights to receive dividend payments that come from income distributions. However, dividends are not guaranteed in some cases and are dependent on whether board of directors will propose dividend or not.

Amy has bought equity shares of an advertising company.

Common shareholders have a right to buy new shares once the company makes them available and before the stocks are released to the public for purchase.