If Preference Shares Are Cumulative, the

question 114

Multiple Choice

If preference shares are cumulative, the

• A) preference dividends not declared in a given year are called dividends in arrears.
• B) preference shareholders and the ordinary shareholders receive equal dividends.
• C) preference shareholders and the ordinary shareholders receive the same total dollar amount of dividends.
• D) ordinary shareholders will share in the preference dividends.

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Definitions:

Firm's Demand

The total quantity of goods or services that a company anticipates selling at a certain price level within a specific time frame.

Land

The surface of the earth not covered by water, recognized as a factor of production in economics, including natural resources and space for activities.

Source of Profit

The origin from which a business or economic activity generates earnings, often through the production of goods, provision of services, or investment activities.

Innovation

An idea that eventually takes the form of new, applied technology or a new production process.