When Investors Purchase ________ Stock, They Receive a Priority Claim

question 241

Multiple Choice

When investors purchase ________ stock, they receive a priority claim in the payment of dividends, as well as assets if the business is liquidated. However, these investors do not have voting rights.

• A) common
• B) preferred
• C) secured
• D) debenture

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Definitions:

Effective Leadership

The capability of a leader to inspire, influence, and guide others toward achieving organizational goals successfully.

Morally Justifiable

relates to actions or decisions that can be defended on ethical grounds, being in alignment with moral principles or values.

Servant Leadership

A leadership philosophy that emphasizes the leader's role as serving the needs of others first and foremost.

Ethical Leadership

Leadership style characterized by guiding principles that respect the rights and dignity of others, promoting fairness, transparency, and integrity.