If a corporation issues cumulative, participating preferred stock, which of the following is true regarding the rights of the preferred stockholders?
A. They must forego dividends for any periods when no dividends are declared.
B. They will share in the dividends that exceed a specified amount.
C. They will received a fixed dividend regardless of the amount of dividends declared.
D. They will have an option to convert their shares to common stock at a specified date.
Answer: B
You might also like to view...
Which of the following best describes how a company should use a business plan?
A) A company should create its business plan by the end of its first year in business. B) A company should have a business plan in place from the start. C) Once in place, the business plan should be revised every month. D) Consistent internal conditions should lead management to keep the same business plan. E) Changing external conditions should not lead management to create a new business plan.
____ is a characteristic of a company that is best suited for open-book management
a. Large size b. Decentralized management c. Centralized management d. Service-oriented
Which of the following items would affect the cost of merchandise inventory acquired during the period?
A) quantity discounts B) cash discounts C) freight-in D) all of the above
The type of business enterprise with the most entities is the sole proprietorship, followed by the corporation; but the type of business enterprise with the greatest total revenue generation per year is the corporation
a. True b. False Indicate whether the statement is true or false