Which of the Following Describes Preferred Stock

question 43

Multiple Choice

Which of the following describes preferred stock?

• A) Stock that sells for a very high price
• B) Stock that is sold to employees of the company as a performance incentive
• C) Stock that is purchased by the corporation for investment purposes
• D) Stock which gives shareholders certain preferences and advantages over common stock

Identify different views on the role of businesses in society, from classical economic to socioeconomic models.

Comprehend the strategies businesses can adopt toward social responsibility, from reaction to proaction.

Understand the concept of corporate philanthropy and its relation to corporate social responsibility.

Recognize the role of ethical considerations within the realm of business decisions and strategies.

---

Definitions:

Float

The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.

Interest Rate

The percentage charged on a loan or earned on an investment, indicating the cost of borrowing or the gain on investing.

Processing Delays

Delays in the processing of transactions, documents, or information, often due to inefficiencies or technical issues within a system or workflow.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, utilizing a special post office box to speed up the collection of checks.