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Basic Question 6 of 8

True or False? Company A has two classes of shares: preferred shares and common shares. Preferred shareholders don't have any voting rights. The ownership structure of this company indicates a weak corporate governance practice.

User Contributed Comments 4

User Comment
gulfa99 the probability of picking the right answer is 50:50.
I was not lucky
papajeff If not knowing the difference between common and preferred shares is unlucky.....yeah, tough break.
gill15 if this Q actually required 50:50 then I would agree with you...

You would not be elected by the nomination board...
davidkhang LOL... this was too funny not to comment.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

describe global variations in ownership structures and the possible effects of these variations on corporate governance policies and practices;

CFA® 2025 Level II Curriculum, Volume 3, Module 17.