A form of equity which receives no preferential treatment in either the payment of dividends or in bankruptcy distributions is called a(n) _____ share.
A)dual class
B)cumulative
C)deferred
D)preference
E)ordinary

Question

Quizplus · Accepted Answer

Ordinary shares are also known as common shares, which receive no preferential treatment in terms of dividends or bankruptcy distributions. Ordinary shareholders have voting rights and can elect the company's board of directors.

A Form of Equity Which Receives No Preferential Treatment in Either