When a Corporation Has Both Preferred and Common Stock Outstanding

question 72

Multiple Choice

When a corporation has both preferred and common stock outstanding earnings per share is computed by dividing net income

• A) by ending common shares outstanding.
• B) by weighted average common shares outstanding.
• C) less preferred dividends by ending common shares outstanding.
• D) less preferred dividends by the weighted average of common shares outstanding.

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Definitions:

Duplication of Tasks

Duplication of tasks refers to the scenario where the same work is being performed by multiple individuals or groups, often leading to inefficiency and waste of resources.

Line Structures

The most straightforward organizational structure, comprising direct lines of authority from the top manager to subordinate employees.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.