A Dividend Preference for Preferred Shares Means That

question 70

Multiple Choice

A dividend preference for preferred shares means that:

• A) Preferred shareholders are allocated their dividends before any dividends are allocated to common shareholders.
• B) Preferred shareholders are guaranteed dividends.
• C) Dividends are paid quarterly.
• D) Only preferred shareholders will receive dividends.
• E) All of these answers are correct.

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Definitions:

Contract

A pact among two or more parties that holds legal force and is binding.

Duty

An obligation or responsibility imposed by law, moral guidelines, or codes of conduct that requires a person or entity to act or refrain from acting in a certain way.

Assignable

Capable of being transferred from one party to another, typically referring to rights or property.

Delegating Duties

The process of assigning responsibility and authority to another person to carry out specific activities, while the original person remains accountable for the outcome.