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:

Substantial Performance

Substantial performance occurs when a party has completed enough of its contract obligations to warrant payment, even if minor details are unfinished.

Air Conditioner

An appliance or system designed to cool the air in an enclosed space to provide a comfortable environment.

Chocolate Bars

Sweet treats made primarily from cocoa, sugar, and milk, formed into solid bars.

Partially Melted

Refers to a state where only a portion of a solid has transitioned to liquid, often relevant in manufacturing or material science contexts.