Which One of the Following Statements Regarding Preference Shares Is

question 5

Multiple Choice

Which one of the following statements regarding preference shares is true?

• A) Preference shareholders are usually repaid last, in the event that the company is wound up.
• B) Preference shares do not usually carry a fixed rate of dividend.
• C) The preference dividend has to be paid before the ordinary dividend can be paid.
• D) Preference shareholders usually have the right to vote at company meetings.

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Definitions:

Successes

Refers to the number of times a desired outcome occurs in a given scenario.

Failure Probabilities

The likelihood or chance that a system or component will fail to perform its intended function.

Cumulative Binomial Probability

The probability of achieving a specific number of successes in a given number of trials in a binomial experiment, calculated up to that point.

Defective Balls

Balls that fail to meet the specified criteria for quality and performance due to manufacturing defects.