Preferred Stock Can

question 48

Multiple Choice

Preferred stock can:

• A)Be cumulative
• B)Have equal rights to common stock
• C)Never receive dividends in arrears
• D)Never have preference to dividends over common stockholders
• E)None of these

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Definitions:

Promoter

An individual or organization that helps to initiate and plan significant events, businesses, or movements.

Ratifies

The act of formally confirming or approving a decision or agreement, making it officially valid.

Preincorporation Contract

An agreement entered into on behalf of a corporation before it is legally formed.

Corporate Promoter

An individual or entity that undertakes the efforts to organize and establish a corporation, including arranging initial capital, legal requirements, and business plans.