Which of the Following Statements Is Not Correct

question 3

Multiple Choice

Which of the following statements is not correct?

• A) The special rights of preferred shares make them less attractive to purchase than ordinary shares.
• B) The special rights of preferred shares can take many forms,which may combine pecuniary advantage and different voting rights.
• C) The basic idea behind preferred shares is that they allow capital to be raised without necessarily creating a proportional dilution,or without creating a shift in stewardship away from the original shareholders.
• D) Preferred shares generally represent a trade-off between return and control: either higher dividends but reduced voting rights,or higher voting rights but lower returns.

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Definitions:

Human Intervention

Human intervention is the process of human beings taking action or influencing a process, system, or activity, often to correct or improve its operation or outcome.

Manipulate(s)

To skillfully handle, control, or use objects or information, often with the intent to influence or manage outcomes.

Control(s)

Measures implemented to direct, manage, or regulate actions to ensure that objectives are achieved or certain outcomes are prevented.

Other Components

Refers to additional elements or parts that are part of a larger system or machine, not always directly involved in the core function but essential for its operation.