Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A) Preference shares carry additional voting rights
• B) Preference shares carry a fixed rate of interest
• C) Preference shares are more risky than ordinary shares
• D) If no dividend is paid on preference shares, dividend can be still paid on ordinary shares

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Definitions:

Capitalist Economy

A capitalist economy is an economic system where private individuals and businesses own the production and distribution of goods and services, operating for profit in competitive markets.

Antagonism

Active opposition or hostility between individuals or groups, often manifesting in conflicts or competition.

Market Situation

The current state or condition of a market, characterized by factors such as supply and demand, competition, and pricing.

Stratification System

The structured ranking of entire groups of people that perpetuates unequal rewards and life chances in society.