Which of the following statements regarding holders of common stock are TRUE?
I. They must approve the payment of dividends.
II. They are entitled to declared dividend distributions in proportion to their ownership.
III. They have residual rights to corporate assets on dissolution.
IV. They have unlimited liability.
A) I and IV.
B) II and IV.
C) II and III.
D) I and II.
Answer: C) II and III.