Which of the Following Is a Feature of a Preferred

question 24

Multiple Choice

Which of the following is a feature of a preferred stock?

• A) Preferred stockholders have priority over debt holders, with regard to earnings and assets of the firm.
• B) Preferred stockholders can elect the members of the board of directors and also vote on corporate issues.
• C) The firm has no obligation, contractual or implied, to pay preferred stock dividends.
• D) Preferred stockholders have the right to receive shares of new stock issue in proportion to their current ownership holdings.
• E) Preferred stockholders have a higher priority claim to distributions made by the firm than common stockholders.

---

Definitions:

Ego Integrity

A sense of self-acceptance and fulfillment achieved in late adulthood, reflecting on life as meaningful.

Integrity Versus Despair

A stage in Erik Erikson’s theory of psychosocial development focusing on older adults’ reflection on their life and either achieving a sense of integrity or experiencing despair over past failures.

Late Adulthood

Late adulthood refers to the final stage of the human lifespan, typically considered to begin around the age of 65, characterized by changes in physical, cognitive, and social functioning.

Cognitive Therapist

A mental health professional specializing in cognitive therapy, focusing on identifying and changing negative thoughts and behaviors.