Which of the following is a difference between common stockholders and preferred stockholders?
A. Unlike common stockholders, preferred stockholders normally have voting rights.
B. Unlike common stockholders, preferred stockholders have a residual claim on assets.
C. Preferred stockholders are guaranteed a better dividend than common stockholders, who may or may not receive a dividend.
D. Common stockholders are assured a greater capital gain than preferred stockholders when a company experiences strong earnings.
Answer: D
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____________ refers to the purchase of an existing business in another nation.
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