Compared with Ordinary Shares,preference Shares Usually

question 80

Multiple Choice

Compared with ordinary shares,preference shares usually:

• A) rank ahead of a company's creditors in the case of a wind-up.
• B) have dividends set at issue.
• C) are viewed as debt financing.
• D) pay their dividends after ordinary shares.

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Definitions:

Cash

Money in the form of currency that can include banknotes and coins, held in the immediate possession of or in bank accounts for the entity.

Rent

Payment made periodically by a lessee to a lessor for the use of land, buildings, or other property.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed.

Purchase Order

A commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.