The Classification of a Preference Share as an Equity Instrument

question 21

True/False

The classification of a preference share as an equity instrument or financial liability is:
A. Affected by a history of making distributions.
B. Affected by an intention to make distributions in the future.
C. Not affected by a history of making distributions.
D. Not affected by the other rights that attach to them if they are non-redeemable
E. None of the given answers.

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Definitions:

Reinforcement

In behavioral psychology, reinforcement is a process by which a behavior is strengthened or increased in frequency by the consequence that follows it.

Green

A color perceived when light with a wavelength between approximately 495–570 nm is detected by the eye, commonly associated with nature and growth.

Operant Response

A behavior that is modifiable by its consequences, including reinforcement or punishment, within the context of operant conditioning.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.