In the Case of Liquidation,where Do Preferred Shareholders Rank

question 21

Multiple Choice

In the case of liquidation,where do preferred shareholders rank?

• A)before creditors and common shareholders
• B)after creditors and common shareholders
• C)after creditors and equally with common shareholders
• D)before common shareholders and after creditors

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Definitions:

Utility-Maximizing

Utility-maximizing is a principle in economics where individuals or entities choose the options that provide the highest satisfaction or utility from the available choices, given their preferences and constraints.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises.

Consumer Behavior

The analysis of how consumers' preferences and economic decisions affect the demand for goods and services.

Marginal Utility

The change in total utility a person derives from consuming an additional unit of a good or service.