Which One of the Following Statements Is True

question 1

Multiple Choice

Which one of the following statements is true?

• A) Equity securities offer fixed claims on future cash payouts.
• B) Unlike bondholders,for their returns,shareholders rely entirely on price appreciation.
• C) In theory,common shareholders exercise very little control over company decisions.
• D) Historically,common shareholders have earned a risk premium as compensation for risk borne in excess of government bonds.
• E) Preferred shareholders are the first investors to be repaid in bankruptcy liquidation.

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Definitions:

Employment References

Professional contacts or prior employers who can vouch for a job applicant's work ethic, skills, and experiences.

Employee Evaluation

A formal assessment process in which the performance of an employee is reviewed and discussed, typically to make decisions about promotions, raises, and development.