Ms.Sue thank you so much for taking your time and helping me through today.God bless you for your help to students and me:)
What type of stock receives an equal part of the profits on each share to be distributed after all other obligations of a company have been satisfied?
A. Cumulative preferred
B. No-par
C. Common
D. Preferred
The answer was C to this question not D,but that's okay:)
I'm sure I never told you this answer was C. I've never seen this question before, and I certainly know that the answer is preferred! (I was president of an investment club for several years.)
You're very welcome, Sarah. I enjoy helping you.
Oh I took the exam an got that one wrong,it said that the real answer was C :) But that's okay I also thought that it was D. ☺☺
Much research is being conducted on repairing faulty sensory organs through devices such as personal guidance systems and eyeglasses, among others. Do you think that researchers should attempt to improve normal sensory capabilities beyond their “natural” range (for example make human visual or audio capabilities more sensitive than normal)? What problems might this cause?
Subject:
I assume this is relevant to the above topic because we might want to buy stock in such companies? . . .
You're welcome! I'm glad I could assist you. Now let's explain how to get the answer to your question.
When determining the type of stock that receives an equal part of the profits on each share to be distributed after all other obligations of a company have been satisfied, you need to understand the different types of stocks.
A. Cumulative preferred stock: This type of stock allows shareholders to receive unpaid dividends cumulatively if they were missed in previous years.
B. No-par stock: This type of stock does not have a par value, which is the minimum price at which a share can be issued.
C. Common stock: This type of stock represents ownership in a company and provides voting rights to shareholders. Common stockholders typically receive dividends after preferred stockholders have been paid.
D. Preferred stock: This type of stock gives shareholders a higher claim on company assets and earnings compared to common stock. Preferred stockholders often receive a fixed dividend rate and have priority over common stockholders when it comes to receiving dividends.
To find the type of stock that receives an equal part of the profits on each share to be distributed after all other obligations of a company have been satisfied, we need to look for the stock that does not have any special privileges or preferential treatment.
Therefore, the correct answer is C. Common stock. Common stockholders usually receive their share of profits after all other obligations, including preferred stock dividends, have been met.