Before the Accident, Bob Was Unemployed and Had Few Friends

question 46

Multiple Choice

Before the accident, Bob was unemployed and had few friends. Lionel, who suffered comparable head trauma, was a successful businessman and had just married. Which of these men should have the more favorable outcome and why?

• A) Bob, because his lack of responsibilities will permit him to focus on getting well.
• B) Bob, because he will benefit from relearning basic social skills.
• C) Lionel, because he is more likely to be motivated to recover.
• D) There is no reason to expect that these men will have different outcomes.

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Definitions:

Preferred Stockholders

Investors who own preferred shares in a company, with rights to dividends before common stockholders and priority in asset distribution.

Dividends in Arrears

Dividends on preferred stock that have been declared but not paid to shareholders.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains the same.