Which of the Following Statements Is FALSE

question 58

Multiple Choice

Which of the following statements is FALSE?

• A) The preferred stock issued by young companies typically does not pay regular cash dividends.
• B) The preferred stock issued by young companies usually gives the owner an option to convert it to common stock on some future date, so it is often called callable preferred stock.
• C) If a company runs into financial difficulties, the preferred stockholders have a senior claim on the assets of the firm relative to any common stockholders.
• D) Preferred stock issued by mature companies such as banks usually has a preferential dividend and seniority in any liquidation and sometimes special voting rights.

---

Definitions:

Viruses

Microscopic infectious agents that replicate only inside the living cells of an organism, capable of causing diseases in humans, animals, and plants.

Adolescence

The transitional stage of physical and psychological development that occurs between childhood and adulthood.

Late Adulthood

The stage in human development characterized by advanced age, usually considered to begin around the age of 65.

Identity

The fact of being who or what a person or thing is; the characteristics determining this.