If Class a Preferred Shares Provide Only for a Cumulative

question 31

Multiple Choice

If Class A preferred shares provide only for a cumulative dividend of $3 per share,upon liquidation Class A Preferred will:

• A) receive $3 per share more than common shares.
• B) receive 103% of common shares.
• C) share equally with common shares.
• D) be subordinated to the rights of common shares.

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Definitions:

Civil Liberties

Fundamental rights and freedoms that are protected from infringement by the government, such as freedom of speech, privacy, and equal rights.

Espionage Act

A United States federal law passed in 1917 that was aimed at preventing interference with military operations, supporting enemy nations, and promoting insubordination in the military.

First Amendment

An amendment to the United States Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition.

American Civil Liberties Union

Organization founded during World War Ⅰ to protest the suppression of freedom of expression in wartime; played a major role in court cases that achieved judicial recognition of Americans’ civil liberties.