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.

---

Definitions:

Article 2

A section of the Uniform Commercial Code that governs the sale of goods, specifying the rights, duties, and liabilities of parties involved.

Vehicles

Means of transport that are designed to move people or goods from one place to another, including cars, trucks, buses, and bicycles.

Appliances

Electrical or mechanical devices designed to perform household functions, such as refrigerators or washing machines.

Stocks

Financial instruments that represent ownership shares in a corporation, giving holders a claim on the corporation's earnings and assets.