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:

Semantic Priming

A phenomenon in which the understanding of one word helps in the faster recognition of a subsequent word with related meaning.

Spreading Activation

A cognitive process where activating one concept in the memory network triggers the activation of related concepts, facilitating information retrieval.

Shortcut

A quicker or more direct route or method than the one usually taken.

Judgment Strategies

The cognitive processes and methods individuals use to make decisions or form evaluations about different aspects of their environment.