Which of the Following Is an Advantage of Preference Shares

question 40

Multiple Choice

Which of the following is an advantage of preference shares?

• A)Preference shareholders may sell their shares for a price higher than that of ordinary shares.
• B)Preference shareholders have higher voting rights than ordinary shareholders.
• C)Preference shareholders have the first claim on dividend funds.
• D)Preference shareholders are guaranteed that they will not take a loss on their investment.

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Definitions:

Current Month

The current month refers to the ongoing month or the present period under consideration or review.

Weighted-Average Method

An inventory costing method that calculates cost of goods sold based on the weighted average cost of all items available for sale.

Equivalent Unit

An equivalent unit is a concept used in cost accounting to denote the amount of work done on units of production expressed in terms of fully completed units, facilitating the calculation of costs in a process costing environment.

Fabricating Department

A division within a manufacturing company where raw materials are assembled or processed into finished goods.