Which Statement Regarding Preference Shares Is Correct

question 45

Multiple Choice

Which statement regarding preference shares is correct?

• A)Preference shares typically carry voting rights.
• B)Preference shares continue to be a major source of new finance for companies.
• C)Preference shareholders do not have the right to receive dividends prior to dividends being paid to ordinary shareholders.
• D)Dividends paid on preference shares are not normally tax deductible to the business.

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Definitions:

Trailer

A towed vehicle used for carrying goods and materials, often attached to a truck or another motorized vehicle.

Flat Spots

Areas of a tire that have become worn or damaged due to prolonged stationary pressure or sudden braking.

Trailer Tires

Specialized tires designed to bear heavy loads and endure the stresses associated with towing trailers.

Unbalanced Braking

A condition in a vehicle's brake system where the brakes do not apply evenly across all wheels, leading to decreased control and safety.