The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 18

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-What is the main difference between common and preferred stocks?

• A)Common stocks pay interest whereas preferred stocks pay dividends.
• B)Preferred stocks carry voting rights whereas common stocks do not carry voting rights.
• C)Preferred stocks pay a guaranteed dividend, while common stocks may or may not pay dividends.
• D)In case of bankruptcy, preferred stockholders have a right to the company's asset, whereas common stockholders do not have such rights.
• E)Common stocks can be converted into preferred stocks while preferred stocks cannot be converted into common stocks.

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Definitions:

Cost Of Goods Sold

The cost of goods sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Job Costing

A cost accounting system used to assign costs to specific jobs or batches, typically used in industries with unique, customizable orders.

Inventory Valuation

The monetary amount associated with the goods held by a company to be sold or used in production.

Operation Costing

A hybrid costing system used in manufacturing, combining elements of both job-order and process costing.