Which of the Following Are Not True with Respect to Preferred

question 10

Multiple Choice

Which of the following are not true with respect to preferred stocks?

• A) The board of directors does not have to approve dividend payments
• B) In the case of liquidation, preferred stockholders have prior claim on the companies assets over common stocks
• C) They have fixed income characteristics
• D) They may be cumulative or non-cumulative
• E) They typically do not participate in general management issues

---

Definitions:

Internal Recruitment

The process of filling job vacancies within an organization by considering current employees for the position before seeking external candidates.

Job Posting

The advertisement of a job opening, typically listing the role's responsibilities, qualifications, and how to apply.

Performance Appraisal

A systematic evaluation by a company of its employees' job performance and productivity, typically on an annual basis, to guide decisions on promotions, raises, and development needs.

Evaluation

A process of assessing or examining something to determine its value, significance, or condition.