SIE Exam Question 140: Answer and Explanation

Question: 140

Which of the following describe the rights shareholders possesses?

I. They retain an interest in residual assets that is proportionate to their investment in the event the corporation declares bankruptcy.

II. They can access a corporation's financial information that would be otherwise held as confidential.

III. They receive a shareholder list.

IV. They can inspect a corporation's books and records.

• A. II, III, and IV
• B. I, III, and IV
• C. I, II, and IV
• D. III and IV

Correct Answer: B

Explanation:

Shareholders will retain proportionate interest in residual assets in the event of bankruptcy, may receive a list of shareholders, and may inspect a corporation's books and records. They do not have the right to access and review a corporation's confidential financial information.