Which of the Following Is an Advantage of Preference Shares

question 54

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 generally receive a fixed amount of dividends before ordinary shareholders do.
• C)Preference shareholders have higher voting rights than ordinary shareholders.
• D)Preference shareholders may sell their shares for a price higher than that of ordinary shares.

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