Which of the Following Statements Is NOT True Regarding Common

question 96

Multiple Choice

Which of the following statements is NOT true regarding common and preferred stock?

• A)Common stock is the most basic and common type of stock.
• B)All corporations issue common stock.
• C)Preferred stock owners do not usually have voting rights.
• D)Preferred stockholders have priority over common stockholders regarding dividends and the distribution of assets upon liquidation.
• E)With preferred shares,the amount of the dividend is generally specified and increases every year.

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Definitions:

Poor Countries

Nations with low levels of economic activity, low per capita income, and generally low standards of living.

Catch-Up Effect

The property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Economic Growth Rates

The percentage increase in the market value of the goods and services produced by an economy over time, typically measured on an annual basis.

Saving Rate

The proportion of disposable income that is saved rather than spent on consumption of goods and services.