Which of the Following Provisions Is Unique to Preferred Shareholders

question 54

Multiple Choice

Which of the following provisions is unique to preferred shareholders and usually NOT available to ordinary shareholders?

• A)Cumulative dividends feature
• B)Voting rights
• C)Floating dividend
• D)Promised yields

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Definitions:

Net Working Capital

The financial difference marked by a company's present assets against its present liabilities, suggesting the company's economic condition in the short run.

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business, indicating its operational efficiency and liquidity.

Taxable Income

The amount of income used to calculate how much the entity or individual owes in taxes to the government.

Tax Bill

The amount of money owed by an individual or corporation to the taxing authorities as a result of income or other taxes.