All of the Following Are Given as Possible Motivations for a Corporation

question 75

Multiple Choice

All of the following are given as possible motivations for a corporation to issue preferred shares except

• A)Raise capital without sacrificing voting control.
• B)Increase the return of common shareholders.
• C)Appeal to investors who do not want to invest in common shares.
• D)If the preferred shares are convertible,they are more attractive to potential investors.
• E)Preferred dividends are paid before common dividends.

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Definitions:

German Empire

A historic state in Central Europe, existing from 1871 to 1918, characterized by its imperial monarchy and rapid industrialization.

Junkers

The German noble landed aristocracy in Prussia, known for their significant military and political influence, especially before and during World War II.

Political Power

The capacity or ability of a person or group to influence or control the actions and outcomes within a society or political body.

Risorgimento

The social and political movement that culminated in the unification of Italy in the 19th century, marked by revolutions, wars, and the consolidation of different states and kingdoms into a single nation.