Which ONE of the Following Statements Is NOT True About

question 64

Multiple Choice

Which ONE of the following statements is NOT true about preference shares?

• A) Preference share dividend payments are fixed obligations of the company, similar to the interest payments on corporate bonds.
• B) Preference share dividends are paid from before-tax income just as the interest on bonds.
• C) Preference shareholders have limited voting privileges relative to ordinary share owners.
• D) While preference shares are legally classified as perpetuities, some issues do have a fixed maturity.

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Definitions:

Behavioral Economics

A branch of economics focusing on how psychological, cognitive, emotional, cultural, and social influences impact the economic choices made by individuals and institutions.

Threat of Rejection

The fear or concern that one's ideas, actions, or presence will not be accepted by others.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.

Neoclassical Economic Model

An economic theory that focuses on how the equilibrium state of markets is reached through supply and demand forces, emphasizing utility maximization and profit maximization.