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Which One of the Following Statements Does Not Describe a Characteristic

Question 18

Multiple Choice

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.

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