Which of the Following Is Not a Right or Preference

question 119

Multiple Choice

Which of the following is not a right or preference associated with preferred stock?

• A) The right to vote
• B) First claim to dividends
• C) Preference to corporate assets in case of liquidation
• D) To receive dividends in arrears before common stockholders receive dividends

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Definitions:

Information and Communication Technologies

An umbrella term that includes all technologies for the manipulation and communication of information.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies by reporting these profits as income.

Retained Earnings

Cumulative net income of a company that has not been distributed to shareholders as dividends, reinvested in the business.

Non-Controlling Interest

The equity in a subsidiary not attributable, directly or indirectly, to a parent company.