A Preferred Share on Which the Right to Receive Dividends

question 82

Multiple Choice

A preferred share on which the right to receive dividends is lost for any year that the dividends are not declared is a:

• A) Convertible preferred share.
• B) Cumulative preferred share.
• C) Noncumulative preferred share.
• D) Participating preferred share.
• E) Callable preferred share.

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Definitions:

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for any resulting damages.

Special Precautions

Additional safety measures or steps taken in specific situations to prevent harm or mitigate risk beyond what is normally required.

Direct Liability

Direct liability refers to a legal responsibility that arises from one's own actions or failures to act, leading directly to harm or damage.

Respondeat Superior

A judicial principle that assigns legal liability to an employer or principal for the wrongful actions performed by an employee or agent, providing these actions happened in the course of their employment or representation.