The purpose of nonvoting common stock is to
A. limit the voting power of the management.
B. allow the minority interest to elect one director.
C. raise capital without giving up any voting rights.
D. give preference on distribution of earnings to those shareholders who own the stock.
Answer:C
The purpose of nonvoting common stock is to
A. limit the voting power of the management. B. allow the minority interest to elect one director. C. raise capital without giving up any voting rights. D. give preference on distribution of earnings to those shareholders who own the stock.