Normal Features of Ordinary Shares Include

question 83

Multiple Choice

Normal features of ordinary shares include:

• A) They entitle the holder to receive his/her proportion of any ordinary dividends declared.
• B) They ensure the holder has priority over unsecured creditors in the case of the company going into liquidation.
• C) They confer voting rights.
• D) They entitle the holder to receive his/her proportion of any ordinary dividends declared and they confer voting rights.

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Definitions:

Tax Burden

The total amount of income, property, and sales taxes that an individual or business must pay to various governments.

Leverage Ratio

A financial ratio indicating the level of debt used by a business to finance its assets and operations.

Interest Burden

The impact of interest expenses on a company's earnings, often expressed as a ratio or percentage of earnings before interest and taxes.

Return-On-Sales Ratio

A profitability metric that calculates the efficiency of a company in converting sales into profits, indicating how much of each dollar of sales is translated into profit.