A Company Issued 8% Preferred Stock with a $100 Par

question 25

Multiple Choice

A company issued 8% preferred stock with a $100 par value.This means:

• A)Preferred stockholders are entitled to 8% of the annual net income.
• B)Only 8% of total contributed capital can be preferred stock.
• C)Preferred stockholders are guaranteed a dividend.
• D)The potential dividend to preferred stockholders is $8 per share per year.

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Definitions:

Throughput

The rate at which a system generates goods or services over a certain period of time.

Reduced Inventory

Reduced inventory involves minimizing the amount of goods or materials held in stock to lower costs, reduce waste, and increase efficiency in production and distribution processes.

JIT

Just-In-Time, an inventory management strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

TPS

Toyota Production System, a manufacturing methodology focused on reducing waste and improving efficiency and quality.