Preferred Share Is Like Long-Term Debt in That ________

question 49

Multiple Choice

Preferred share is like long-term debt in that ________.

• A)it gives the holder voting power regarding the firm's management
• B)it promises to pay to its holder a fixed stream of income each year
• C)the preferred dividend is a tax-deductible expense for the firm
• D)in the event of bankruptcy preferred share has equal status with debt

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Definitions:

Resistance To Change

The unwillingness to accept or adapt to changes within an organizational or personal setting.

External Environment

The conditions, entities, events, and factors outside an organization that influence its activities and choices.

Customer-Friendly

Practices or attributes that make interactions with customers positive, satisfying, and conducive to loyalty.

Direct Costs

Expenses that can be directly attributed to the production of a specific good or service, such as materials and labor.