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Which Statement Regarding Preference Shares Is Not Correct

Question 19

Multiple Choice

Which statement regarding preference shares is not correct?


A) Preference shareholders have the right to receive dividends prior to any dividends being paid to ordinary shareholders.
B) Preference shares are a permanent source of capital.
C) Dividends paid on preference shares are normally tax deductible to the business.
D) Preference shares typically do not carry voting rights.

Correct Answer:

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