A Difference Between Ordinary and Preference Shares Is

question 64

Multiple Choice

A difference between ordinary and preference shares is:

• A)preference dividends are payable only after ordinary dividends have been paid
• B)preference dividends are tax deductible
• C)preference dividends are a fixed amount
• D)ordinary shares are less risky
• E)preference shares have greater potential for capital gains.

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Definitions:

Neutralization

A chemical reaction in which an acid and a base react quantitatively to form water and a salt, effectively balancing the acid and base.

HCl

Hydrochloric acid, a strong corrosive acid that is a solution of hydrogen chloride in water, used in industrial and manufacturing processes.

NaOH

Sodium hydroxide, a strong alkaline compound used in the manufacturing of various products, such as paper, textiles, and soaps.

KBr

Potassium Bromide, a chemical compound used in photography, pharmaceuticals, and as a sedative in veterinary medicine.