Which one of the following statements does not describe a characteristic of preference shares?
A) Preference shareholders have no right to vote in company general meetings.
B) Preference shareholders receive their dividends from the company before ordinary shareholders are paid any dividend.
C) Preference shares represent a riskier investment than ordinary shares.
D) Preference shareholders will not receive any dividends if their company does not have any distributable retained earnings.
Correct Answer:
Verified
Q13: Dividends are a share of the profit
Q14: Dividends are an expense for limited liability
Q15: Ordinary shareholders take on the highest risks
Q16: Which one of the following is not
Q17: Jessica Limited has total assets of £12,000,000
Q19: Preference shares are so called because holders
Q20: Tyla Limited has total assets of £15,000,000
Q21: Folly Limited wishes to raise £300,000 in
Q22: Duck Limited wishes to raise £1,200,000 in
Q23: Paolo Limited is issuing 200,000 ordinary shares
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