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:

Acquisition Transaction

A business operation in which one company purchases most or all of another company's shares to assume control.

Investment

The allocation of resources (such as capital, time, or effort) in the expectation of receiving future benefits or returns.

Credit Balance

The amount of money in a financial repository that surpasses the debit balance and is available for use.

Consolidated Goodwill

The excess value of purchase price over the fair market value of identifiable assets and liabilities acquired during consolidation.