When Shares Are Involved, Even Preferred Shares, There Is No

question 71

Multiple Choice

When shares are involved, even preferred shares, there is no legal obligation to pay dividends, but a failure to repay ________ constitutes a breach of the corporation's legal obligation.

• A) debts
• B) assets
• C) bondholders
• D) shareholders
• E) par-value shares

---

Definitions:

Viscous

A physical property describing a fluid that is thick and sticky, offering resistance to flow, such as honey or glycerin.

Nephron

The functional unit of the kidney, responsible for the filtration and excretion of waste products from the blood and the regulation of electrolyte and fluid balance.

Edema

A medical condition characterized by the accumulation of excess fluid in the body's tissues, causing swelling.

Albumin

A protein commonly found in blood plasma that helps maintain blood volume and pressure by regulating osmotic forces.