If a Company Retires Preferred Stock

question 96

Multiple Choice

If a company retires preferred stock:

• A)total stockholders' equity will decrease.
• B)total stockholders' equity will increase.
• C)the company can record a gain or loss on retirement of stock.
• D)the number of outstanding shares will go up.

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Definitions:

Conciliation Service

An intermediary service that facilitates negotiation between conflicting parties to reach an agreement, often used in labor disputes.

National Labor Relations Board

A US government agency responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Union Contract

A legally binding agreement between a labor union and an employer, detailing the terms of employment, wages, and workplace conditions.