Which of the Following Is a Feature of Cumulative Preferred

question 113

Multiple Choice

Which of the following is a feature of cumulative preferred stock?

• A)Dividends in arrears are paid to common stockholders.
• B)Dividends in arrears are paid to both preferred and common stockholders.
• C)Dividends accumulate and must be paid each year.
• D)Dividends in arrears are paid to preferred stockholders whenever a dividend is declared by the corporation.

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Definitions:

External Environment

Outside factors and forces that can affect an organization's performance, including economic, technological, sociopolitical, and legal elements.

Adaptive Change

A form of change that requires individuals, teams, or organizations to adjust their underlying assumptions and strategies in response to anticipated or actual shifts in the environment.

Developing

The process of growing or causing something to grow, evolve, or become more advanced.

Clarifying

The process of making statements or concepts less confused and more clearly comprehensible.