Which of the Following Is Not a True Statement

question 75

Multiple Choice

Which of the following is not a true statement?

• A)A corporation generally obtains equity capital from stockholders.
• B)A corporation can issue both preferred stock and common stock.
• C)When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock.
• D)Most corporations sell common stock to satisfy a large part of their financing needs.
• E)The most important priority a preferred stockholder enjoys is receiving cash dividends before common stockholders receive cash dividends.

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Definitions:

Inferred Term

A concept or term not directly stated but understood from the context.

Invitation to Submit Bids

A formal solicitation process where potential suppliers are asked to present proposals for providing goods or services at a specified price.

Rejection of Offer

The refusal to accept a proposal or offer during negotiations.

Actually Received

Pertains to the actual physical possession or direct receipt of an item or information.