Which Statement Is True

question 107

Multiple Choice

Which statement is true?

• A)From a legal perspective, preferred stock is a form of corporate equity.
• B)All classes of stock must have equal voting rights per share.
• C)Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions.
• D)Preferred dividends provide tax-free income to individual investors.
• E)Preferred shareholders prefer noncumulative dividends over cumulative dividends.

---

Definitions:

Helium

Helium is a chemical element with symbol He and atomic number 2, known as the second lightest and second most abundant element in the observable universe, primarily used in cryogenics and as an inert gas shield in arc welding.

Lewis Structures

Diagrams that represent the valence electrons of atoms within a molecule, showing how they are bonded together.

Double Bond

A chemical bond in which two pairs of electrons are shared between two atoms.

Lewis Structure

A representation of molecules where symbols for elements are used to represent nuclei and inner-shell electrons, and dots or dashes between symbols represent electron pairs forming covalent bonds.