Orleans Company Was Incorporated on January 1, 2012

question 42

Multiple Choice

Orleans Company was incorporated on January 1, 2012. Orleans issued 4,000 shares of common stock and 500 shares of preferred stock on that date. The preferred shares are cumulative, $100 par, with an 8% dividend rate. Orleans has not paid any dividends yet. In 2015, Orleans had its first profitable year, and on November 1, 2015, Orleans declared a total dividend of $28,000. What is the total amount that will be paid out to common shareholders?

• A)$4,000
• B)$16,000
• C)$12,000
• D)$28,000

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Definitions:

Organizational Structure

The way in which a company is organized internally, defining the roles, responsibilities, and hierarchy within the organization to facilitate its operations and objectives.

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Global Business Units

Specialized business segments within a multinational company, designed to address global markets and manage international operations.

Category Managers

Professionals responsible for managing a specific category of products in a retail or wholesale setting, focusing on pricing, product assortment, and promotions.