Answer:
The correct answer is letter "B": Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.
Explanation:
Stocks are high-risk investments that can provide profits overnight or can swipe investors' accounts in a matter of seconds. When it comes to inflation, they do not have to deal too much with it. On the other hand, bonds are less risky, almost safe investment vehicles that give investors profits based on the fixed interest rate that the bond pays and is collected by year. Inflation erodes the purchasing power of bonds.
Answer:
d. have the right to receive dividends only in the years the board of directors declares dividends.
Explanation:
Preferred shareholders<u> have the right to receive dividends in the priority to the common shareholders of the company unit. </u> In other words, if there is sufficient funds with the company to declare dividends both to preferred and common shareholders, then in that case, preferred shareholders will be entitled the right to receive dividends first, and remaining amount will be distributed to common shareholders. Only that, they have this right only when the board of directors declares dividends.
This is a depreciation method based on units of production.
The formula for this method is:
(original cost of equipment - salvage value) / number of units expected during useful life
False should be the answer
