When Preferred Stock Is Cumulative and the Directors Either Do

question 110

Short Answer

When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of cumulative dividends, the unpaid amount is called ________.

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Definitions:

Obligations

Duties or responsibilities imposed by law, contract, or moral duty, requiring individuals or organizations to act in a certain manner.

Sellers and Buyers

Parties engaged in the exchange of goods or services for payment in a marketplace.

Tender

An offer by a party in a contract to perform, along with being ready, willing, and able to perform, a duty outlined in that contract.

Conforming Goods

Goods that meet the specifications and quality standards outlined in a purchase contract.