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Common Stock:
Certificates that present ownership to corporation usually mature stock shareholders have the right to vote for the election of commercial directors. In privately held organizations they may also elect the commercial officers. Organizations may issue several classes of ordinary stock; some with voting rights, some without. Holders of common stock normally do not have any right to receive dividends, although if an organizations income permit, the board of directors may elect to describe a common stock extra, either in cash or in additional shares. Common stock may be issued with a par value or with no par value. In either case, it is recorded in the stock- holder's equity section of the balance sheet.
Exercise: The Issue of Equity-Read the following situation: The local textile plant has a workforce of 55 full-time hourly workers, 12 part-time workers (less than 15 hours per we
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Explain strategy as an organisational process.
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