Which of the Following Best Distinguishes Preferred Shares from Common

question 43

Multiple Choice

Which of the following best distinguishes preferred shares from common shares?

• A)Preferred shares do not vote but do receive priority on dividends.
• B)Preferred shares do not receive dividends but have priority on liquidation.
• C)Preferred shares have the same dividends as common but receive priority on liquidation.
• D)Preferred shares vote and receive priority on dividends and liquidation.

---

Definitions:

Variance

A statistical measurement of the spread between numbers in a data set, representing how much the numbers differ from the average of the numbers.

Measures of Central Tendency

Statistical indices that describe the center point or typical value of a dataset, including the mean, median, and mode.

Measures of Variability

Statistics that describe the dispersion or spread of data points within a dataset, including range, variance, and standard deviation.

Exclusive Range

A range in mathematics and statistics that includes the start point and the end point, but not the extremes themselves.