One Type of Stock Enables the Shareholder to Get His

question 38

Multiple Choice

One type of stock enables the shareholder to get his or her usual dividend. Then, after the common shareholders receive their normal dividend, he or she is able to share in any additional income with the common shareholders. This type of stock is _____.

• A) cumulative preferred
• B) noncumulative preferred
• C) participating preferred
• D) cumulative to the extent earned

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Definitions:

Stakeholder Needs

The requirements or demands of individuals or groups directly or indirectly affected by an organization's actions.

Stakeholder Orientation

A business approach that values and considers the interests and well-being of all individuals and entities affected by the company's actions.

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of its stakeholders.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.