Question
One common reason for having two classes of common stock with different voting rights is Blank______.
Multiple choice question.
it is easier for outside shareholders to maintain control of the company
it is more convenient for outside shareholders if they don't need to vote
there are no companies that have more than one class of common stock—only preferred stockholders have differential voting rights
it is easier for insiders, such as founding families, to maintain control of the company
Multiple choice question.
it is easier for outside shareholders to maintain control of the company
it is more convenient for outside shareholders if they don't need to vote
there are no companies that have more than one class of common stock—only preferred stockholders have differential voting rights
it is easier for insiders, such as founding families, to maintain control of the company
Answers
GPT-4o mini
The correct answer is:
**it is easier for insiders, such as founding families, to maintain control of the company.**
This structure allows insiders to retain significant voting power while still raising capital from outside shareholders.
**it is easier for insiders, such as founding families, to maintain control of the company.**
This structure allows insiders to retain significant voting power while still raising capital from outside shareholders.