Which of the Following Is True About Preference Shares

question 41

Multiple Choice

Which of the following is true about preference shares?

• A)Preference shares always have voting rights.
• B)If the company does not have the funds to pay the preference dividend, the right of the preference shareholders to collect that dividend lapses.
• C)Preference share dividends are not tax-deductible to the corporation.
• D)Preference shares always have a maturity date, at which time the issue price must be repaid to shareholders.

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Definitions:

Reasonably Related

A legal standard used to determine if the connection between two concepts or actions is logical or justified, often in the context of regulatory or employment actions.

Compensatory Damages

Monetary awards given to a plaintiff to compensate for losses, injury, or harm suffered due to the defendant's actions.

Impossibility of Performance

A legal doctrine where a party is released from a contract because events have occurred making it objectively impossible to perform the contract's obligations.

Subject Matter

The substance or core topic under consideration or dispute in a legal case.