Which of the Following Is a Feature of Cumulative Preferred

question 8

Multiple Choice

Which of the following is a feature of cumulative preferred stock?

• A) Dividends accumulate and must be paid each year.
• B) Dividends in arrears are paid to both preferred and common stockholders.
• C) Dividends in arrears are paid to preferred stockholders whenever a dividend is declared by the corporation.
• D) Dividends in arrears are paid to common stockholders.

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Definitions:

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for receiving, processing, and transmitting information.

Soma

The cell body of a neuron, containing the nucleus and other structures vital for cell function.

Terminal Buttons

Small knobs at the end of an axon that release chemicals called neurotransmitters into the synapse.

Synaptic Cleft

The small gap at a synapse between neurons, through which neurotransmitters are released and received.