Preference Shares Have a Number of Features Similar to Debt

question 58

Multiple Choice

Preference shares have a number of features similar to debt that distinguish them from ordinary shares.Which of the following features may be incorporated in a preference share issue?
i.Cumulative or non-cumulative
ii.Convertible or non-convertible
iii.Redeemable or non-redeemable
iv.Issued at different rankings
v.Participating or non-participating

• A) i, ii, iii, iv
• B) i, ii, iv, v
• C) ii, iii, iv, v
• D) All of the given answers

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Definitions:

Calcium

A chemical element symbolized by Ca, essential for living organisms, particularly in cell physiology and bone formation.

ATP

Adenosine triphosphate, a complex organic chemical that provides energy to drive many processes in living cells, such as muscle contraction, nerve impulse propagation, and chemical synthesis.

Buoyancy

The force that causes objects to float in a fluid by displacing a volume of fluid whose weight equals the object's weight.

Adaptation

The process by which organisms become better suited to their environment through genetic changes over generations.