Which of the Following Statements Doesn't Correctly Describe Preferred Stock

question 50

Multiple Choice

Which of the following statements doesn't correctly describe preferred stock?

• A)Preferred shareholders have a preference with respect to dividend payments.
• B)Preferred shareholders have a preference with respect to assets in the event of liquidation.
• C)Preferred shareholders have voting rights on a per share basis.
• D)Preferred stock typically has a fixed dividend rate.

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Definitions:

Specified Benefit Plan

A retirement plan where the benefits to be received by employees are defined and specified in advance.

Defined Benefit Plan

A retirement plan in which an employer commits to paying a specified pension amount to employees upon retirement, based on factors like salary history and length of employment.

Defined Contribution Plan

A type of retirement plan where employees, employers, or both make contributions on a regular basis, but the benefits received at retirement depend on the performance of the investments.

Vested

A status where an employee has earned the right to receive full benefits from an employer's pension or retirement plan, typically after a specified period of service.