Which of the Following Statements Is NOT a Feature of Ordinary

question 43

Multiple Choice

Which of the following statements is NOT a feature of ordinary shares?

• A) Ordinary shares are a major source of external equity financing for companies.
• B) Ordinary shares entail voting rights at annual general meetings.
• C) Ordinary shares have no fixed payment obligation.
• D) Dividends of ordinary shares are always tax deductible.

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Definitions:

Electronic Transactions

Deals or exchanges of goods, services, or information conducted over electronic systems like the Internet or other computer networks.

Prudent Businessperson

An individual who exercises care and diligence in making decisions or taking actions in the context of business operations.

Small Business

An independently owned and operated company that is limited in size and in revenue depending on the industry.

Illegal Contracts

Agreements that are not enforceable by law due to their involvement with illegal activities or being against public policy.