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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