Which of the Following Statements Is CORRECT

question 55

Multiple Choice

Which of the following statements is CORRECT?

• A) the preferred stock of a given firm is generally less risky to investors than the same firm's common stock.
• B) corporations cannot buy the preferred stocks of other corporations.
• C) preferred dividends are not generally cumulative.
• D) a big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation.
• E) preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation.

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Definitions:

Ciliary Ganglion

A parasympathetic ganglion located in the orbit that plays a role in controlling the ciliary muscles of the eye, affecting lens shape and pupil size.

Otic Ganglion

A small parasympathetic ganglion located just below the ear, associated with the glossopharyngeal nerve, involved in salivation and lacrimation.

Parasympathetic Cranial

Pertaining to the cranial part of the parasympathetic nervous system, which helps control bodily functions when at rest, like saliva production and slowing the heartbeat.

Glossopharyngeal

A cranial nerve (IX) that manages taste and other functions in the throat and tongue.