Dual classes of are common in new ventures where promotional usually goes to the founders.
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A. B. C. D.C
The correct answer is C. Common stock; common stock.
Dual classes of stock refer to a company's practice of creating two different classes of shares with different voting rights and dividend payments. This is common in new ventures where founders want to retain control over the company while raising capital from investors.
One class of stock, usually called "Class A" shares, is typically held by the founders or management team and carries greater voting rights than the other class of shares, which is usually called "Class B" shares. Class B shares are usually sold to outside investors and carry fewer voting rights, but may have preferential dividend payments.
The main advantage of dual classes of stock is that it allows founders to maintain control over the company, even if they own a relatively small percentage of the total equity. This can be important for founders who are concerned about maintaining their vision for the company, or who want to avoid the risk of being ousted by activist shareholders.
The disadvantage of dual classes of stock is that it can lead to a lack of accountability for management, as outside investors may not have sufficient voting power to challenge management decisions. This can be especially problematic if the founders or management team are making poor decisions that are harming the company's performance.
In summary, common stock with dual classes is the most likely answer as it allows founders to retain control while raising capital from outside investors, and is commonly used in new ventures.