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:

Automatically Perfected

A status achieved by security interests in certain types of property upon attachment, without further legal action or filing required.

Financing Statement

A document filed by a creditor to give public notice that it has or may have an interest in the personal property of a debtor (usually in connection with a secured transaction).

Consumer Good

A commodity or a product that is produced and purchased to satisfy the personal needs or wants of the consumer.

General Creditor

An individual or entity that is owed a debt that is not secured by collateral, leaving them with no special rights to any specific property of the debtor in case of default.