The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 18

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-What is the main difference between common and preferred stocks?

• A)Common stocks pay interest whereas preferred stocks pay dividends.
• B)Preferred stocks carry voting rights whereas common stocks do not carry voting rights.
• C)Preferred stocks pay a guaranteed dividend, while common stocks may or may not pay dividends.
• D)In case of bankruptcy, preferred stockholders have a right to the company's asset, whereas common stockholders do not have such rights.
• E)Common stocks can be converted into preferred stocks while preferred stocks cannot be converted into common stocks.

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Definitions:

Principle Of Equivalence

The concept in decision theory that choices should be consistent when presented in different forms but representing the same problem.

Spatial

Related to, or existing in space; involving the perception, awareness, and manipulation of objects in a three-dimensional space.

Transformational

Related to a process of profound change in form, structure, or appearance, often used in contexts of transformational leadership or transformational grammar in linguistics.

Perceptual

pertaining to or involving the perception of the environment through the senses, including the process of recognizing, organizing, and interpreting sensory information.