Common stockholders usually have all of the following rights except:

• A. The right to share in the distribution of assets upon liquidation
• B. The right to receive a fixed dividend each year
• C. The right to receive information about the company
• D. The right to vote in the election of the board of directors

Answer: (B)

Verified step by step guidance

1. Understand the rights typically associated with common stockholders. Common stockholders generally have the right to vote in the election of the board of directors, the right to receive information about the company, and the right to share in the distribution of assets upon liquidation.
2. Recognize that common stockholders do not have guaranteed rights to receive fixed dividends each year. Fixed dividends are typically associated with preferred stockholders, not common stockholders.
3. Analyze the question to identify which option does not align with the rights of common stockholders. The correct answer is the right to receive a fixed dividend each year, as this is not a characteristic of common stock.
4. Review the other options provided in the question to confirm that they are valid rights of common stockholders. These include the right to vote, the right to receive company information, and the right to share in asset distribution upon liquidation.
5. Conclude that the correct answer is the exception: 'The right to receive a fixed dividend each year,' as this is not a guaranteed right for common stockholders.