Examveda
Examveda

Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as

A. common stock

B. preferred stock

C. bonds equity

D. common shares

Answer: Option B

Solution(By Examveda Team)

Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as preferred stock. Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.

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Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process