Which Statement Relating to Preference Shares Is Not Correct

question 13

Multiple Choice

Which statement relating to preference shares is not correct?

• A)They are often non-voting shares.
• B)They are generally more risky for shareholders to own than ordinary shares.
• C)They are entitled to receive a dividend before the ordinary shareholders.
• D)They normally have a fixed rate of dividend attached.

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Definitions:

Intangible Assets

Non-physical assets owned by a business that have value, such as patents, trademarks, goodwill, and copyrights.

Normal Balance

The side (debit or credit) on which an account increases, determined by the account type in the accounting equation.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including a balance sheet and income statement.

Permanent/Temporary

Denotes the duration of financial accounts or business strategies: "permanent" indicates long-term endurance, while "temporary" suggests a short-term or temporary existence.