The 'Participating' in Participating Preference Shares Means That the Shareholders

question 24

Multiple Choice

The 'participating' in participating preference shares means that the shareholders may:

• A) Vote at annual meetings.
• B) Vote at annual meetings if preference dividends have not been paid.
• C) Participate in a conversion of preference shares into ordinary shares.
• D) Receive a share of any further profits that are to be distributed to ordinary shareholders after the payment of the preference dividend.
• E) None of the given answers.

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Definitions:

Liabilities

The financial obligations or debts of a business entity, which are settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Resources owned or controlled by a business, individual, or entity that are expected to provide future economic benefits.

Accounting Equation

A fundamental financial principle representing the balance between a company's assets, liabilities, and equity.

Office Furniture

Tangible items such as desks, chairs, and filing cabinets that are used in an office environment.