**Question:**One reason why corporations issue preferred stock is to raise money without giving up control, as preferred stock usually does not have voting rights.**Response Options:**- **[ ] True**- **[ ] False****Explanation:**This question examines one of the key characteristics of preferred stock in corporate finance. Preferred stock is a type of equity that generally offers dividends before any dividends can be issued to common shareholders, but unlike common stock, it typically does not grant voting rights to its holders. This allows corporations to raise capital without diluting the control of current shareholders. **Interactive Element:**Participants can select their response by clicking on either the **"True"** or **"False"** button.- **True:** Indicates that the statement is correct and reflects a fundamental reason why corporations might issue preferred stock.- **False:** Indicates disagreement with the statement, suggesting that preferred stock might have other reasons for issuance or that it may come with voting rights in some cases.

Preferred stockholders does not have voting rights.p Preferred shares receive a fixed amount of…

Answered: ne reason why corporations issue…

ne reason why corporations issue preferred stock is to raise money without giving up control, as prefe ave voting rights. True or False True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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