The Achievement of an Increased Return on Common Shares by Paying

question 42

Multiple Choice

The achievement of an increased return on common shares by paying dividends on preferred shares or interest at a rate that is less than the rate of return earned with the assets invested in the corporation by the preferred shareholders or creditors is called

• A)Financial leverage
• B)Contributed capital
• C)No par value
• D)Preemptive right
• E)Capital gain

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Definitions:

Pessimistic Attitude

A mindset characterized by the expectation that negative outcomes will generally prevail over positive ones.

Self-serving Bias

The common habit of a person crediting themselves for positive outcomes or successes but attributing failures to external factors.

Reciprocal Determinism

A concept in social cognitive theory that suggests an individual's behavior is both influenced by and influences their personal factors and the environment.

Poor Officiating

Refers to substandard or inadequate performance by referees or officials in enforcing rules during a sport or game.