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.

Recognize the significance of brand loyalty and the factors that contribute to its development.

Understand the concept of information processing errors and their types in financial decision-making.

Recognize the role and challenges of behavioral finance vs. traditional financial theories.

Identify the different biases (like overconfidence, conservatism, and regret avoidance) affecting investor behavior.

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Definitions:

Warranty Expense

The cost incurred by a company to repair, replace, or refund products sold during the warranty period.

Selling Price

The amount for which a product or service is sold to buyers, determining the revenue generated from sales activities.

Unearned Ticket Revenue

Revenue received from tickets sold for future events, recognized as a liability until the service is performed or event takes place.

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.