Which of the Following Statements Concerning Preference Shares Is Correct

question 65

Multiple Choice

Which of the following statements concerning preference shares is correct?

• A)Preferred shares generally is more costly to the firm than ordinary shares.
• B)Most issues of preference shares have a cumulative feature.
• C)Preferred dividend payments are tax-deductible.
• D)Preferred shares are a riskier form of capital to the firm than bonds.

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Definitions:

Management Failures

Situations where leadership and organizational strategies fail to achieve objectives, leading to negative consequences for the company.

Poor Product Designs

Refers to products that are inefficient, unappealing, or unsafe due to inadequate design, often leading to consumer dissatisfaction or failure in the market.

Cross-Selling

A sales strategy where a company proposes additional products or services to a customer based on previous purchases.

Ineffective Management Oversight

A situation where the supervisory activities performed by managers or governing bodies fail to detect or prevent poor performance and non-compliance with policies and regulations.