Examlex
Which of the following statements is true?
Liquidation
The process of winding up a company's financial affairs by selling assets to pay off liabilities, with any surplus distributed to shareholders.
Preference Shares
Preference shares are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.
Ordinary Shares
Shares that have no specific rights to any distributions of profit by the company. Ordinary shareholders obtain what is left after all other parties’ claims have been met.
Liquidation
The process of converting assets into cash or paying off liabilities in order to close down a business.
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