If Preference Shares Are Non-Cumulative

question 324

Multiple Choice

If preference shares are non-cumulative,

• A) preference shareholders will not receive dividends.
• B) unpaid dividends become dividends in arrears.
• C) unpaid dividends will never be paid.
• D) the corporation has a liability for any unpaid dividends.

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Definitions:

Skates

Cartilaginous fishes belonging to the family Rajidae in the superorder Batoidea of rays. More broadly, "skates" can refer to ice or roller skates used in sports and recreation.

Homo Habilis

Extinct hominin; earliest named Homo species; known only from Africa, where it arose 2.3 million years ago.

Homo Erectus

An extinct species of early human that lived throughout Africa and Eurasia during the Pleistocene Epoch.

Vertebrate Lung

A respiratory organ found in vertebrates that exchanges oxygen and carbon dioxide with the environment.