Which of the Following Is Not a Characteristic of Most

question 105

Multiple Choice

Which of the following is not a characteristic of most preferred stocks?

• A) Preference as to dividends.
• B) No voting power.
• C) Convertible into common stock.
• D) Preference as to assets in the event of liquidation of the company.

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Definitions:

Return on Inventory

A financial metric used to assess how effectively a company generates profits from its inventory investments.

Return on Stockholders' Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders' equity, indicating how effectively equity is used to generate profits.

Asset Management Ratios

Those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.

Company's Ability

A broad concept referring to a business's capacity to execute its strategies and achieve its objectives effectively.