If a Company Has Issued Preferred Stock

question 82

Multiple Choice

If a company has issued preferred stock

• A) the common shareholders will have weaker voting rights.
• B) preferred shareholders will be allowed to choose one or more members of the board of directors.
• C) dividends on preferred stock will be higher than the common dividends.
• D) preferred dividends will have to be paid before the company can pay dividends on common stock.

---

Definitions:

Petty Cash Fund

A modest cash reserve used for quick payments for assorted trifling expenses.

Replenished

The process of refilling or restocking items to their required or previous level, often used in inventory and supply chain management.

Office Supplies

Consumable items used in offices or businesses for daily operations, such as stationery, printer ink, and cleaning supplies.

Postage

The cost associated with mailing items via the postal service, determined by the size, weight, and destination of the item.