Which of the Following Is an Advantage of Preference Shares

question 50

Multiple Choice

Which of the following is an advantage of preference shares?

• A)In the event of liquidation, preference shareholders have first claim on remaining company assets.
• B)In the event of liquidation, preference shareholders may retain their proportionate share of voting rights.
• C)In the event of liquidation, preference shareholders may sell their shares for higher amounts than ordinary shares.
• D)In the event of liquidation, preference shareholders are guaranteed to get their investment back in full.

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Definitions:

Proposition

A statement or assertion that expresses a judgment or opinion which is either true or false.

Venn Diagram

A diagram that uses circles to represent the relationships among different sets, highlighting commonalities and differences.

Proposition

An observation that signals a judgment or perspective.

Venn Diagram

A diagram that uses circles to represent sets and their relationships, including intersections, unions, and complements, often used in logic and set theory.