A/An _____ Is Defined as a Contract Purchase That Is

question 35

Multiple Choice

A/An _____ is defined as a contract purchase that is routinely made over a relatively limited time horizon, typically one year or less.

• A)short-term contract
• B)alliance
• C)spot contract
• D)long-term contract
• E)partnership

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Definitions:

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically paying dividends before common shares and having priority in the event of a liquidation.

Dividend Preference

A feature of preferred stock that gives it priority over common stock in the payment of dividends.

Voting Rights

The entitlement of shareholders to vote on company matters, typically at the annual general meeting, proportional to the number of shares they hold.

Dividends In Arrears

Dividend payments that a company owes to its preferred shareholders but has not yet paid out.