Preference shareholders have the right to receive assets in the event of liquidation before the ordinary shareholders.

Name: Preference shareholders have the right to receive assets in the event of liquidation before the ordinary shareholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Preference shareholders have priority over ordinary shareholders when it comes to receiving assets during liquidation. They are entitled to be paid back their investment before ordinary shareholders receive any leftovers.

Preference Shareholders Have the Right to Receive Assets in the Event