If a Corporation That Has Only One Class of Shares

question 44

Multiple Choice

If a corporation that has only one class of shares, or if there is more than one class, the class that has no preference over the other classes of shares, is called:

• A) Common shares.
• B) Cumulative preferred shares.
• C) Convertible preferred shares.
• D) Preferred shares.
• E) Participating preferred shares.

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Definitions:

Recession

A downturn in the economy.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market balance.

Equilibrium Quantity

Equilibrium Quantity is the quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance.

Demand Curve

A chart that demonstrates how the demand for a product changes in response to its price during a particular period.