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.

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Definitions:

Communications Server

A server dedicated to managing communications and data exchange between networked devices and systems.

Internet Connectivity

The ability of individuals or organizations to connect to the internet, using various technologies such as broadband or wireless.

Wireless Access Points

Devices that allow wireless devices to connect to a wired network using Wi-Fi or related standards.

Portable Devices

Electronic devices that are small enough to carry with you easily, such as smartphones, tablets, and laptops.