Which Statement Regarding Preference Shares Is Not Correct

question 53

Multiple Choice

Which statement regarding preference shares is not correct?

• A) Preference shares typically do not carry voting rights.
• B) Preference shares are a permanent source of capital.
• C) Preference shareholders have the right to receive dividends prior to any dividends being paid to ordinary shareholders.
• D) Dividends paid on preference shares are normally tax deductible to the business.

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Definitions:

Servant Leaders

Leaders who prioritize the needs of their team or organization over their own, focusing on serving others.

Michael McCain

An individual; without further context, this term lacks a clear definition related to established concepts or theories.

Maple Leaf Foods

A major Canadian consumer packaged meats company, known for its products and brands in the food industry.

Servant Leader

A leadership philosophy which emphasizes the leader's primary role as serving the needs of their team members, focusing on their development and well-being.