If the Management of a Corporation Wants to Raise Equity

question 259

Multiple Choice

If the management of a corporation wants to raise equity capital while maintaining control over the corporation and limiting their cash outflows, they should issue shares of:

• A) Non-voting preferred stock.
• B) Voting preferred stock.
• C) Voting common stock.
• D) Non-voting common stock.
• E) Zero coupon bonds.

---

Definitions:

IQ

Short for Intelligence Quotient, a score derived from standardized tests designed to assess human intelligence.

Concept

An abstract idea or a mental symbol typically associated with a fundamental characteristic of something.

Contextual Intelligence

The ability to understand the limits of our knowledge and adapt that knowledge to an environment different from the one in which it was developed.

Phonemes

The smallest unit of sound in a language that serves to distinguish one word from another.