From the Issuing Firm's Point of View, One Advantage of Preference

question 56

Multiple Choice

From the issuing firm's point of view, one advantage of preference shares over bonds is [blank].

• A)preferred dividends are a deductible expense for tax purposes
• B)preferred voting privileges concentrate power in the hands of managers and major shareholders
• C)a dividend payment can be skipped without triggering bankruptcy
• D)bonds don't have a maturity date, whereas preference shares do

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Definitions:

Substandard Performance

A level of work activity or output that falls below the set minimum standards or expectations of quality and efficiency in a professional setting.

Actual Performance

The real results or outcomes achieved by an individual, team, or organization, often compared against planned or expected performance.

Projects

Temporary endeavors undertaken to create a unique product, service, or result.

One-Time Activities

Events or actions that occur only once and are not repeated in the foreseeable future.