A Cumulative Dividend Preference Means That

question 74

Multiple Choice

A cumulative dividend preference means that:

• A)preferred shareholders are paid dividends before common shareholders are paid dividends for the current year only.
• B)unpaid dividends to preferred shareholders accumulate and must be paid before common shareholders receive dividends.
• C)preferred shareholders are paid their full fixed dividend rate each period as long as the company is in operation.
• D)unpaid cash dividends to preferred shareholders must be replaced with stock dividends during the current period.

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Definitions:

Process Loss

The inefficiency and productivity loss that occurs in team processes, often due to poor coordination, communication, or conflict among team members.

Social Loafing

The occurrence where people put in less effort towards achieving a goal while working as part of a group compared to when they work by themselves.

Group Performance

The effectiveness and outcomes achieved through the collective actions of a group of individuals working towards common objectives.

Process Loss

The inefficiencies that occur during group processes that lead to lower effectiveness or productivity than could be achieved by individuals working separately.