Participating Stock Will

question 56

Multiple Choice

Participating stock will:

• A)share in excess earnings after preferred payments along with common stock.
• B)accumulate dividends that will be paid later.
• C)participate in earnings only to the extent that all other classes do.
• D)participate in earnings to the same extent as common stock.

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Definitions:

Partnership

An authorized business entity formed by two or more persons, sharing both the management duties and the earnings.

Winding Up Partners

The process of settling the accounts and liquidating the assets of a partnership for the purpose of dissolving the partnership.

Disagree

To have a difference of opinion or conflicting views about a particular subject.

Majority

The age at which a person is considered legally competent to consent to contracts and manage their own affairs; also, a quantity greater than half of a total.