Which Statement Is True of Classes of Corporate Stock

Which statement is true of classes of corporate stock?

A) In the event of bankruptcy, preferred stockholders receive their investment back first before the common shareholders and debtholders.
B) Convertible preferred stock refers to an investment that initially is made in stock and that can be changed to a loan at a later time.
C) A professional investor typically will require that an LLC or partnership be converted into a full corporation with the founders and employees owning common shares.
D) Both a and c are true of corporate stock.