The Statement Relating to Preference Shares That Is Not Correct

question 4

Multiple Choice

The statement relating to preference shares that is not correct is:

• A) They normally have a fixed rate of dividend attached.
• B) Holders are entitled to receive a dividend before ordinary shareholders.
• C) They are generally more risky for shareholders to own than ordinary shares.
• D) They are often non-voting shares.

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Definitions:

Assignee

An individual or entity to whom rights or interests are transferred by another, known as the assignor.

Good Faith

Acting with honesty and sincerity without intention to defraud or seek an unfair advantage.

Delegation

The act of assigning responsibility or authority from one person to another, often seen in the context of tasks and duties.

Assignment

The transfer of rights, property, or obligations from one party to another, usually within the context of a contract.