Which of the Following Is Not a True Statement

question 75

Multiple Choice

Which of the following is not a true statement?

• A)A corporation generally obtains equity capital from stockholders.
• B)A corporation can issue both preferred stock and common stock.
• C)When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock.
• D)Most corporations sell common stock to satisfy a large part of their financing needs.
• E)The most important priority a preferred stockholder enjoys is receiving cash dividends before common stockholders receive cash dividends.

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Definitions:

Perceive

To become aware or conscious of something through the senses, especially the ability to see, hear, or become aware of something by touching or feeling.

Adaptable

Having the ability to adjust or modify oneself to different conditions or environments.

Adjust

To change something slightly to make it more suitable, effective, or appropriate.

Shampoo

A hair care product designed to clean the scalp and hair, removing dirt, oil, and other unwanted particles.