Preference shares can have characteristics that are consistent with liabilities.These characteristics include:

Name: Preference shares can have characteristics that are consistent with liabilities.These characteristics include:
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Question

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Preference shares having priority over ordinary shares in the return of capital means that the preference shareholders have a claim on the company's assets that is senior to the claims of ordinary shareholders. This characteristic is more akin to a liability than equity.

Preference Shares Can Have Characteristics That Are Consistent with Liabilities