Which of the Following Is an Advantage of Preferred Stock

question 94

Multiple Choice

Which of the following is an advantage of preferred stock?

• A) Preferred shareholders generally receive a fixed amount of dividends before common stockholders do.
• B) Preferred shareholders are guaranteed that they will not take a loss on their investment.
• C) Preferred shareholders have higher voting rights than common shareholders.
• D) Preferred shareholders may sell their shares for a price higher than that of common stock.

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Definitions:

Standard Quantity

The expected or predetermined amount of materials or input required to produce a single unit of product.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used as a benchmark against which the actual costs are compared.

Standard Hours

The predetermined amount of time expected to complete a task or to produce a unit of output under normal conditions.