What Is True About a Preference Share

question 46

Multiple Choice

What is true about a preference share?

• A)All of the given answers are true.
• B)Holders of the preference shares usually have no voting rights.
• C)The preference share is a form of equity from a legal standpoint.
• D)Unpaid preference share dividends are not debts of the company.
• E)The preference share has preference over ordinary shares in the payment of dividends.

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Definitions:

Mechanistic Organisation Design

A form of organizational structure characterized by rigid departmentalization, a clear hierarchy of authority, and a high degree of formalization in procedures and rules.

Strategic Objectives

Specific, measurable goals that an organization aims to achieve as part of its larger strategy.

Core Processes

The essential activities and procedures that are central to an organization's function and value creation.

Work Processes

The sequence of steps or activities that are undertaken to achieve organizational goals or produce goods and services.