Which of the following is NOT a common right for shareholders?

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Master the UCF ACG2021 Principles of Financial Accounting Final Exam. Study with comprehensive practice tests, flashcards, and multiple choice questions, each with detailed explanations. Ace your exam!

Shareholders possess various rights that are fundamental to their ownership of a company, but the right to receive corporate secrets is not one of them. Shareholders typically have the right to vote for board members, participate in asset distribution upon liquidation of the company, and receive dividends as declared by the board of directors.

Voting rights allow shareholders to influence corporate governance by electing members to the board, who will then make significant decisions regarding the company's management. The right to participate in asset distribution comes into play in the event of liquidation, where shareholders are entitled to a portion of the remaining assets after the company's debts have been settled. Similarly, the right to receive dividends provides shareholders with a share of the company's profits, as dividends are often paid out based on the number of shares they own.

The concept of corporate secrets, on the other hand, pertains to sensitive information critical to the business's operations and competitive advantage. This information is typically restricted to protect the interests of the company and its stakeholders, meaning that shareholders do not have the right to access such confidential data.