Jason and Edward Held Stocks in a Cell Phone Manufacturing

Multiple Choice

Jason and Edward held stocks in a cell phone manufacturing company. However, when the company went out of business in a few years and liquidated its assets, Edward rightfully received his share in the company proceeds before Jason. Based on the given information, it can be concluded that Edward was a _____.

A) cumulative preferred stockholder and Jason was a participating preferred stockholder
B) participating preferred stockholder and Jason was a cumulative preferred stockholder
C) preferred stockholder and Jason was a common stockholder
D) common stockholder and Jason was a preferred stockholder