BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Shareholders participate in the decision-making process.
|
|
|
It represents an ownership interest in the company
|
|
|
The company is obligated to make periodic dividend payments
|
Detailed explanation-1: -Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.
Detailed explanation-2: -Which of the following is a characteristic of common stock? Unlike preferred stockholders, common stockholders are not entitled to receive fixed dividends. Common stockholders have limited liability and their losses are limited to the original amount of the investment in their investment in the firm.
Detailed explanation-3: -Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.