Which of the Following Statements Is Not True

Multiple Choice

Which of the following statements is not true?

A) The legal capital of a corporation represents an amount that cannot be returned to the owners while the corporation still exists.
B) Investors in a corporation are called stockholders.
C) The right to receive a dividend is one of the basic rights of preferred stockholders.
D) Compared with preferred stock,common stock usually has a favorable preference in terms of dividends.