Which of the Following Statements Is FALSE

question 55

Multiple Choice

Which of the following statements is FALSE?

• A) If the company runs into financial difficulties, the preference shareholders have a senior claim on the assets of the firm relative to any ordinary shareholders.
• B) The preference shares issued by young companies usually give the owner an option to convert them to ordinary shares on some future date, so they are often called callable preference shares.
• C) Preference shares issued by mature companies such as banks usually have a preferential dividend and seniority in any liquidation and sometimes special voting rights.
• D) The preference shares issued by young companies typically do not pay regular cash dividends.

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Definitions:

Attractiveness

The quality that makes something appealing or desirable.

Production Function

An equation that specifies the output that a firm can produce with various combinations of inputs, reflecting the relationship between input and output quantities.

Service Firms

Businesses that primarily offer intangible products, such as services or expertise, to their customers.

Operations Management

The field of management focused on designing, controlling, and improving the production process and redesigning business operations in the production of goods or services.