Which one of the following statements is correct?

Question

Quizplus · Accepted Answer

Preferred stock is a type of equity in a corporation, but it has preferred rights over common stock such as priority in dividends and liquidation. However, preferred shareholders generally do not have voting rights.

B is incorrect because different classes of stock may have different voting rights per share. 
C is incorrect because the board of directors is elected by all shareholders, and preferred shareholders may not have voting rights. 
D is incorrect because dividends are taxable income for individual investors. 
E is incorrect because cumulative dividends are preferred by shareholders since they accumulate and must be paid before any new dividends can be issued.

Which One of the Following Statements Is Correct