Which of the Following Investment Characteristics Would Be Favorable to an Investor

question 44

Multiple Choice

Which of the following investment characteristics would be favorable to an investor? I Callable
II Convertible
III Cumulative dividends
IV Pledge of collateral

• A)I, II and III are correct
• B)II, III and IV are correct
• C)I and III are correct
• D)I, II, III and IV are all correct
• E)I and II are correct

---

Definitions:

Shareholder

An individual or entity that owns one or more shares of stock in a corporation, thus having an interest in its performance and governance.

Authorization

Official permission or approval for an action.

Business Judgement Rule

A legal principle that protects corporate directors and officers when making business decisions, assuming they act in good faith and in the best interest of the corporation.

Officers

Individuals appointed by a company's board of directors who are responsible for managing the daily operations and executing the strategic plans of the corporation.