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What Is True About a Preference Share

Question 6

Multiple Choice

What is true about a preference share?


A) All of the given answers are true.
B) Holders of the preference shares usually have no voting rights.
C) The preference share is a form of equity from a legal standpoint.
D) Unpaid preference share dividends are not debts of the company.
E) The preference share has preference over ordinary shares in the payment of dividends.

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