A Protective Feature on a Preferred Stock That Requires Preferred

question 9

Multiple Choice

A protective feature on a preferred stock that requires preferred dividends that were not paid in previous years to be disbursed before any common stock dividends can be paid is called _____. 

• A)par value
• B)voting rights
• C)cumulative dividends
• D)a sinking fund
• E)a preemptive right

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Definitions:

Price Competition

A market situation where businesses compete primarily on the price of their products or services.

Music Production Industry

The sector of the economy dedicated to creating, producing, and distributing music and sound recordings.

Airline Industry

A sector of the economy composed of companies and organizations involved in the business of transporting passengers and cargo by aircraft.

Complex Interdependence

Complex interdependence reflects a situation in international relations where states and their fortunes are interconnected through multiple channels, diminishing the relevance of military power.