Preferred Stock Has All,except Which of the Following Characteristics

question 44

Multiple Choice

Preferred stock has all,except which of the following characteristics?

• A) No stated maturity
• B) A fixed dividend payment that carries a higher precedence than common stock dividends
• C) The same binding contractual obligation as debt
• D) Preferred lacks the ownership privilege of common stock

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Definitions:

Accounts Payable

Liabilities of a company representing money owed to creditors for goods and services purchased on credit.

Cash

The most liquid form of financial assets, readily available for transactions or any immediate need.

Common Stock

A type of financial security that represents ownership in a corporation, giving holders a share of the firm's profits and voting rights.

Accounts Payable

Accounts payable are liabilities or amounts owed by a company to its creditors for goods and services purchased on credit.