Preferred Shares Are Often Issued Instead of Debt

question 151

Multiple Choice

Preferred shares are often issued instead of debt

• A) to avoid paying dividends to the common shareholders.
• B) because a corporation's debt-to-equity ratio has become too high.
• C) to increase the market value of the shares.
• D) to decrease the market value of the shares.

---

Definitions:

Constant Internal State

The concept of maintaining a stable, consistent internal environment in an organism, also known as homeostasis.

An Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli that is unlearned.

An Instinct

A fixed, innate pattern of behavior in animals in response to certain stimuli.

Robins

Small, common songbirds known for their reddish-orange breasts and melodious songs.