When a Company Redeems Preference Shares

question 17

Multiple Choice

When a company redeems preference shares:

• A) It must ensure it has sufficient cash reserves to do so.
• B) It must do so out of profits other than those available for the issuing of dividends.
• C) It must issue fresh shares to fund the redemption.
• D) None of the given answers are correct.

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Definitions:

IV Route

A method of delivering medication or fluids directly into the venous circulation via a needle or catheter.

Pharmacokinetics

The branch of pharmacology concerned with the movement of drugs within the body, including absorption, distribution, metabolism, and excretion.

Absorption

The process by which substances are taken up from the environment and enter the bloodstream or tissues.

Excretion

The process by which the body removes waste materials, such as urea and carbon dioxide.