Which of the Following Is NOT a Characteristic Commonly Associated

question 20

Multiple Choice

Which of the following is NOT a characteristic commonly associated with preference shares?

• A) A specified, fixed return
• B) No voting rights
• C) Higher ranking than bond holders on claims on assets
• D) No entitlement to take possession of assets if the borrower defaults on payment

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Definitions:

Profit Maximization Theory

An economic principle suggesting that the goal of a business is to increase net income by managing revenue and costs.

Rights Theory

A framework in ethical philosophy that focuses on the rights belonging to individuals, emphasizing the importance of respecting these rights in societal and personal interactions.

Ethical Behavior

Conduct that is consistent with accepted principles of right and wrong governing the professional and personal actions of individuals.

Profit Maximization Theory

An economic principle suggesting that companies are best served by producing goods or services at a level where marginal costs equal marginal revenues.