Common shareholders usually have all of the following rights except:

• A. The right to receive a fixed interest payment
• B. The right to vote in the election of the board of directors
• C. The right to share in assets upon liquidation after creditors and preferred shareholders
• D. The right to receive dividends when declared

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the rights of common shareholders. Common shareholders typically have certain rights, including voting rights, the right to receive dividends when declared, and the right to share in assets upon liquidation after creditors and preferred shareholders.
2. Step 2: Analyze the options provided in the question. The options include: (1) The right to receive a fixed interest payment, (2) The right to vote in the election of the board of directors, (3) The right to share in assets upon liquidation after creditors and preferred shareholders, and (4) The right to receive dividends when declared.
3. Step 3: Identify the characteristic that does not apply to common shareholders. Common shareholders do not receive fixed interest payments; this is a characteristic of debt instruments like bonds, not equity ownership.
4. Step 4: Compare the other options to the rights of common shareholders. Voting rights, sharing in liquidation assets, and receiving dividends when declared are all standard rights associated with common shareholders.
5. Step 5: Conclude that the correct answer is the right to receive a fixed interest payment, as this is not a right granted to common shareholders.