Which Statement Is FALSE

question 17

Multiple Choice

Which statement is FALSE?

• A)Preferred stockholders receive dividends before the common stockholders only if the preferred stock is cumulative.
• B)Preferred stockholders receive dividends before the common stockholders.
• C)Preferred stockholders receive assets before the common stockholders if the corporation liquidates.
• D)Preferred stockholders have the same basic four rights as common stockholders,unless a right is taken away.

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Definitions:

Feasible

Capable of being done or achieved; possible to do easily or conveniently.

Barter

Trading goods and services directly without involving money as an intermediary.

Barter System

An ancient method of exchange where goods and services are directly traded for other goods and services without using money.

Good

A material item that can be touched, used, or consumed, which is produced to fulfill wants or needs.