Which of the Following Statements Is FALSE

question 100

Multiple Choice

Which of the following statements is FALSE?

• A)Preference shares issued by mature companies such as banks usually have a preferential dividend and seniority in any liquidation and sometimes special voting rights.
• B)The preference shares issued by young companies usually give the owner an option to convert them to ordinary shares on some future date, so they are often called callable preference shares.
• C)If the company runs into financial difficulties, the preference shareholders have a senior claim on the assets of the firm relative to any ordinary shareholders.
• D)The preference shares issued by young companies typically do not pay regular cash dividends.

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