Preferred Stock Often Has a Preference in the Distribution of Assets

question 53

True/False

Preferred stock often has a preference in the distribution of assets over common stock in the event of dissolution of the corporation.

---

Definitions:

Reflex Arc

A reflex arc is the neural pathway that controls a reflex action, typically consisting of a sensory neuron, a motor neuron, and sometimes one or more interneurons.

Motor Neuron

A type of neuron that transmits nerve impulses from the central nervous system to muscles or glands, causing them to act.

Effector

An organ, gland, or muscle capable of responding to a stimulus, especially a nerve impulse.

Mixed Nerve

A nerve containing both afferent (sensory) and efferent (motor) nerve fibers, allowing it to transmit signals in both directions between the brain and various parts of the body.