Preferred shares are least likely to have which of the following characteristics?A. Preference as to assets on liquidation of the corporation.B. Preference as to dividends.C. Extra liability for the preferred shareholders.D. The right of the holder to convert to common shares.

Preferred shareholders are usually entitled to dividend at a fixed rate.At the time of liquidation,…

Answered: Preferred shares are least likely to…

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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The ability of any stockholder to transfer stock to another person without the knowledge or the consent of the other stockholders and without disturbing the normal activities of the corporation is called a. unlimited life. b. suitability for large scale operations. c. taxation of corporate earnings. d. transferable ownership units.
Which of the following statements correctly relate to ordinary shares? i) They represent an ownership interest.ii) Ordinary equity holders are the first to have their claims met in the event of the company going into administration.iii) As dividends are the return to the shareholders, they are paid out of operating profits before tax.iv) Control rights often differ between ordinary and other classes of share.
True or False: An S Corporation will not be treated as having more than one class of stock solely because of differences in voting rights (i.e. both voting and non-voting common stock).
A major difference between common and preferred stock Seleccione una: a. is that common stockholder have voting rights and preferred stockholders do not. b. is In the case of liquidation after a bankruptcy, common stockholder will be paid before preferred stockholders. c. is that preferred stockholder have voting rights and common stockholders do not. O d. is that common stock have a fixed dividend and preferred stock does not pay a dividend.
which of the following may be revoked by the board of directors after it has been declared? a) A share dividend b) An equitable distribution. c) a property prescription. d) a cash dividend

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Preferred shares are least likely to have which of the following characteristics? A. Preference as to assets on liquidation of the corporation. O B. Preference as to dividends. C. Extra liability for the preferred shareholders. D. The right of the holder to convert to common shares.