How is the cost-plus price determined?

Inherent risk is best defined as:

a) The risks that remains after management executes its risk responses. b) The internal and external risks that exist assuming there are no internal controls in place. c) The amount of risk an organization is willing to accept in pursuit of its business objectives. d) The risk that material error exists in the financial statements after the audit.

The ________ feature found with many issues of preferred stock requires that all current and past due preferred dividends must be paid prior to any dividend payout to common shareholders

A) cumulative B) participating C) convertible D) historical