The Tendency for Shared or Jointly Owned Resources to Be

question 111

Short Answer

The tendency for shared or jointly owned resources to be wasted and not used in an optimal or advantageous fashion is known as the ____________________.

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Definitions:

Cumulative Preferred Shares

Preferred stock where dividends accumulate if not paid in a given period and must be paid out before any dividends can be paid to common stockholders.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid before any dividends can be paid to common shareholders.

Dividend Payable

A liability recorded on the balance sheet for dividends declared by the company but not yet paid to shareholders.