Which Statement Is True of Classes of Corporate Stock

question 43

Multiple Choice

Which statement is true of classes of corporate stock?

• A) In the event of bankruptcy, preferred stockholders receive their investment back first before the common shareholders and debtholders.
• B) Convertible preferred stock refers to an investment that initially is made in stock and that can be changed to a loan at a later time.
• C) A professional investor typically will require that an LLC or partnership be converted into a full corporation with the founders and employees owning common shares.
• D) Both a and c are true of corporate stock.

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Definitions:

Generation Y

Also known as Millennials, this demographic cohort follows Generation X, typically regarded as those born between the early 1980s and mid-1990s to early 2000s.

Generation Z

The cohort of individuals born approximately between the mid-1990s to the early 2010s, known for their fluency in digital technologies and progressive social views.

Traditionalists

Individuals or groups who adhere to long-established customs, beliefs, or methods, often resisting change.

Baby Boomers

Individuals born approximately between 1946 and 1964, often associated with significant economic, political, and social changes in their lifetimes.