debt liabilities
preferred stock
hybrid stock
common liabilities
Answer is Right!
Answer is Wrong!
The correct answer is: B. preferred stock
Preferred stock is a type of stock that has a higher claim on a company’s assets and earnings than common stock. In the event of bankruptcy, preferred stockholders are paid out before common stockholders.
Debt liabilities are the obligations of a company that must be repaid, such as loans and bonds. Hybrid stock is a type of stock that has some of the characteristics of both common stock and debt. Common liabilities are the debts of a company that are not secured by any assets, such as accounts payable and accrued expenses.
Here is a more detailed explanation of each option:
- Debt liabilities are the obligations of a company that must be repaid, such as loans and bonds. In the event of bankruptcy, debt holders are paid out before preferred stockholders and common stockholders.
- Preferred stock is a type of stock that has a higher claim on a company’s assets and earnings than common stock. In the event of bankruptcy, preferred stockholders are paid out before common stockholders.
- Hybrid stock is a type of stock that has some of the characteristics of both common stock and debt. For example, hybrid stock may have a fixed dividend like debt, but it may also give the holder the right to vote on company matters like common stock.
- Common liabilities are the debts of a company that are not secured by any assets, such as accounts payable and accrued expenses. In the event of bankruptcy, common creditors are paid out last.