Which of the Following Statements Best Describes Preferred Stocks

question 32

Multiple Choice

Which of the following statements best describes preferred stocks?

• A) Preferred stock cannot be converted into common stock.
• B) Preferred stock holders are usually granted the right to vote only in the event that dividends due are fully paid to stockholders.
• C) Redemption of preferred stocks is allowed irrespective of whether the cost would make the corporation insolvent or not.
• D) If a corporation's articles allow redemption, the corporation can buy back preferred stocks even if the holders do not wish to sell.

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Definitions:

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in negotiations and labor relations.

National Labor Relations Act

A foundational statute in United States labor law that guarantees the rights of employees to organize and to bargain collectively with their employers.

Strike

A collective decision by union members not to work until certain demands or conditions are met.

Replacement Workers

Individuals hired by an employer to fill the positions of striking or otherwise unavailable employees.