Which of the Following Statements Is True

question 18

Multiple Choice

Which of the following statements is true?

• A) Ordinary shares is a more conservative investment than preferred stock.
• B) Dividends on preferred stock are less secure than dividends paid to ordinary shareholders.
• C) Preferred stockholders have a priority claim on dividends before ordinary shareholders.
• D) As the basic form of ownership, ordinary shareholders receive their dividends before any other class of stock.
• E) As the basic form of ownership, ordinary shareholders have a priority claim on a firm's assets if the firm enters bankruptcy.

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Definitions:

Strategic Business Units

Subsidiary divisions within a larger company, each focusing on a specific business area, with its own strategy and objectives.

Competitive Advantage

The attributes or abilities of a firm that enable it to outperform its competitors.

Original Content

Unique material produced for publication or broadcast that has not been copied or adapted from existing works.

Business Portfolio Model

A strategic tool used by companies to manage and evaluate the performance of their business units and product lines.