In Reference to Preference Shares, 'Non-Participating' Means That a Holder

question 84

Multiple Choice

In reference to preference shares, 'non-participating' means that a holder of such shares:

• A)is not able to vote at the annual general meeting
• B)does not participate in profits
• C)does not participate in bonuses such as special dividends or bonus shares
• D)will not subsequently receive any missed dividend payments
• E)cannot convert them into ordinary shares.

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Definitions:

Current Asset

An asset expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.

Treasury Stock

Shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.

Total Assets

The combined value of all assets, including cash, inventory, property, and equipment, owned by a person or business.

Stockholders' Equity

The portion of a company's assets that belongs to its shareholders, represented by capital stock and retained earnings.