Advanced Diploma of Financial Planning (ADFP) Practice Test

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Prepare for the Advanced Diploma of Financial Planning Exam. Study with flashcards and multiple-choice questions, each question has hints and explanations. Get ready for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

In addition to dividends and capital appreciation, what other right do owners of common stock have?

Right to special bonuses
Right to vote
Right to schedule meetings
Right to tax-free returns

The correct answer is: Right to vote

Owners of common stock possess several rights, and one of the most significant is the right to vote. This right allows shareholders to participate in key company decisions, such as electing the board of directors or approving significant corporate policies. The voting power is a fundamental aspect of corporate governance and provides shareholders with a voice in the management and strategic direction of the company. This voting right is critical as it empowers shareholders to influence important decisions that can affect their investment. It ensures that management is accountable to the owners of the company, as the decisions made can have substantial implications for the company's performance and, by extension, for the value of the shareholders' investments.