Unlike Ordinary Shareholders, Preference Shareholders Are More Likely to Be

question 39

True/False

Unlike ordinary shareholders, preference shareholders are more likely to be interested in the extent to which profit is safe, rather than in profit growth, due to the fact that the return on their investment is typically fixed.

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Definitions:

Profit

The profit achieved when the revenue from business operations surpasses the combined total of expenses, costs, and taxes needed to maintain those operations.

Loss

Loss refers to the negative financial result that occurs when expenses exceed revenues or costs outweigh benefits in a transaction or operation.

Service

An intangible economic activity that satisfies a need or wants, often performed by humans or automated systems.

Ambience

The character and atmosphere of a place, often related to its visual and environmental qualities that contribute to its overall feel.