Which of the Following Statements Relating to Ordinary Shareholders Are

question 64

Multiple Choice

Which of the following statements relating to ordinary shareholders are correct?
I. Ordinary shareholders generally have greater risks than preference shareholders.
II. Ordinary shareholders are the last to receive a distribution if the company is wound up.
III. Ordinary shareholders have a greater opportunity for gain if the company is profitable than preference shareholders.
IV. Ordinary shareholders have the right to vote at meetings of the company.

• A) III and IV
• B) II and III
• C) I, III and IV
• D) I. II, III and IV

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Definitions:

Special Price Reductions

Discounts offered on goods or services beyond the usual pricing, often to promote sales or clear inventory.

Automakers

Companies involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Surge Pricing

A pricing strategy that increases the cost of goods or services in response to high demand.

Volume Objective

A goal set related to the quantity of product a company plans to sell within a specified period.