Which of the Following Statements Is Descriptive of Common Stock

question 133

Multiple Choice

Which of the following statements is descriptive of common stock?

• A)Stockholders are considered creditors of a corporation.
• B)The payment of dividends is required.
• C)Dividends paid are an expense for the issuing corporation.
• D)Issuing stock is less financially risky than issuing bonds.

---

Definitions:

Antitussive

A medication used to suppress or relieve coughing.

Cough Reflex

A protective reflex that helps clear the airways of mucus, irritants, and pathogens through a sudden, often repetitive, expulsion of air from the lungs.

Peripheral Nervous Systems

The portion of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord, facilitating communication to the central nervous system.

Sedative/Tranquilizer

These are drugs or agents that induce a calming effect, reducing excitement, irritability, or anxiety, and often used to facilitate sleep.