Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)Preferred stock usually has a stated or par value but unlike bonds,this par value is not repaid at maturity because preferred stocks do not have a maturity date.
• B)The only time the par value of preferred stock would be paid to the shareholder is if the company ceases operations or retires the preferred stock.
• C)Skipped preferred dividends become a liability of the company.
• D)Preferred stock cannot be converted into common stock.

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Definitions:

Unselfishly

Characterized by acting or giving without consideration for personal gain.

Satisfied

A feeling of fulfillment or contentment with one's achievements, qualities, or situation.

Needs

Fundamental requirements or necessities essential for an individual's well-being and survival.

Cultural Background

The background of a person or group defined by their ethnicity, religion, language, and other factors that contribute to their culture.