Which of the Following Is an Advantage of Preference Shares

question 30

Multiple Choice

Which of the following is an advantage of preference shares?

• A)Preference shareholders are guaranteed that they will not take a loss on their investment.
• B)Preference shareholders may sell their shares for a price higher than that of ordinary shares.
• C)Preference shareholders have the first claim on dividend funds.
• D)Preference shareholders have higher voting rights than ordinary shareholders.

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Definitions:

Human Larynx

A crucial structure in the neck comprising vocal cords, it plays a key role in breathing, swallowing, and producing sound.

Primary Bronchus

The major air passage that branches from the trachea into the lungs, dividing into smaller bronchi.

Alveoli

Small air sacs in the lungs where gas exchange between the air and blood occurs.

Hilus

A part of an organ where blood vessels, nerves, and other structures enter or exit.