Which of the statements below is FALSE? Like a bond, common stock entitles the owner to some of the cash flow of a company. Bond ownership gives the right to participate in the management of the company. For common stock, there is no maturity date and the promised cash flow is not stated on the asset, but is determined at a later date by the board of directors. An equity claim is a claim to all the assets and cash flows of a company once debt claimants have been paid.

Question

Business

Cash

25 March, 14:00

Which of the statements below is FALSE? Like a bond, common stock entitles the owner to some of the cash flow of a company. Bond ownership gives the right to participate in the management of the company. For common stock, there is no maturity date and the promised cash flow is not stated on the asset, but is determined at a later date by the board of directors. An equity claim is a claim to all the assets and cash flows of a company once debt claimants have been paid.

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Branson Benson · Answer 1

Bond Ownership gives the right to participate in the management of the company. This statement is FALSE

Explanation:

Only equity holder have the right to participate in the management of the company.