Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)The preferred stock issued by young companies typically does not pay regular cash dividends.
• B)The preferred stock issued by young companies usually gives the owner an option to convert it into common stock on some future date,so it is often called callable preferred stock.
• C)If the company runs into financial difficulties,the preferred stockholders have a senior claim on the assets of the firm relative to any common stockholders.
• D)Preferred stock issued by mature companies such as banks usually has a preferential dividend and seniority in any liquidation and sometimes special voting rights.

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Definitions:

Harm

Refers to damage or injury that affects someone or something's well-being or functionality.

Abnormally Dangerous Activity

An abnormally dangerous activity is any activity that inherently involves a high risk of harm or injury to people or property, even when all possible safety measures are taken.

Strict Liability

A legal doctrine holding an individual or entity responsible for damages or injuries caused by their actions or products, regardless of fault or intention.

Significant Risk

Refers to a risk level that is substantial enough to warrant attention or action, often used in legal, financial, and health contexts to denote risks that are not negligible or minor.