Preference Dividend Payments Are Fixed Obligations of the Company, Similar

question 32

True/False

Preference dividend payments are fixed obligations of the company, similar to the interest payments on corporate bonds.

---

Definitions:

Social Norms

The unwritten rules that govern the behavior of individuals within a society, guiding what is considered acceptable or unacceptable.

Conform

The act of adjusting one’s behavior or thinking to match those of others or to meet societal standards.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.

Foot-In-The-Door

A persuasion technique involving getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.