Which of the Following Statements Is True Regarding Common and Preferred

question 24

Multiple Choice

Which of the following statements is true regarding common and preferred shares?

• A) Preferred shareholders have more voting power than common shareholders.
• B) Common shareholders are guaranteed a fixed dividend.
• C) Common shareholders have a more senior claim against assets than preferred shareholders.
• D) Preferred shareholders are entitled to their dividends before common shareholders
• E) Common shareholders earn a better return than preferred shareholders.

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Definitions:

Square Feet

A measurement of area commonly used in the United States to quantify the size of a space, such as real estate or floor plans.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit, distinct from cost centers.

Performance Evaluation

The process of assessing the execution of activities and tasks by employees or departments against set standards or objectives to inform management decisions.

Cash Conversion Cycle

A measure that quantifies the duration a business takes to transform its investments in inventory and resources into cash inflows from sales operations.