Preferred Shareholders

question 45

Multiple Choice

Preferred shareholders

• A)typically have the same voting rights as common shareholders.
• B)do not share the ownership of the firm with common shareholders.
• C)typically participate in the profits of the firm beyond the stated fixed annual dividend.
• D)may not receive a dividend every year.

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Definitions:

Respondeat Superior

A legal doctrine making an employer (or master) liable for the torts of an employee (servant) that are committed within the scope of the employee’s employment.

Deferred Prosecution Agreements

Agreements between prosecutors and defendants whereby prosecution is postponed for a specified period provided the defendant meets certain conditions.

Non-prosecution Agreements

Legal agreements in which prosecutors agree not to file charges against an individual or company in exchange for cooperation or other conditions.

Monetary Penalties

Fines or financial charges imposed on individuals, organizations, or companies as punishment for breaking laws or regulations.