Which Statement Regarding Preference Shares Is Not Correct

question 37

Multiple Choice

Which statement regarding preference shares is not correct?

• A) Preference shareholders have the right to receive dividends prior to any dividends being paid to ordinary shareholders.
• B) Preference shares are a permanent source of capital.
• C) Dividends paid on preference shares are normally tax deductible to the business.
• D) Preference shares typically do not carry voting rights.

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Definitions:

Apologize

The act of expressing regret or sorrow for actions that may have caused harm or inconvenience to others.

THINK Technique

A mindfulness strategy often used to encourage thoughtful responses rather than reactive ones, asking if a statement is True, Helpful, Inspiring, Necessary, and Kind before speaking or acting.

Necessary

A requirement or need for a particular purpose or reason.

THINK Technique

A strategy or process designed to help individuals make thoughtful and informed decisions or reactions, emphasizing thoughtful consideration before acting.