Question

The most efficient way to ensure that producers are responsible for products is through---

Answer 1

B.Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.

Answer 2

Answer:

b. Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.

Explanation:

Both, preferred and common stock constitute a piece of ownership in a company. However, there are differences between preferred and common stock. One of the differences is that preferred does not have voting rights. Preferred shareholders have no voice in electing the board of directors, company policies or the future of the company. In the other hand preferred stockholders have a bigger claim to a company's dividends which are usually higher than those issued for common stock.  

Common stock holders get to vote on corporate issues, such as electing new directors to the corporation's board and can make a profit through rising share prices and dividend payments. However, should the company files for bankruptcy, holders of common stock are last on the list to get their money back after regular creditors and holders of preferred stock. If you hold common stock and the company goes bust, you are unlikely to get any of your capital back.

To ensure producers are responsible for products is through common stockholders who have a saying in the company's production policies.