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:

Collaborative Problem Solving

A method where two or more individuals or groups work together through idea sharing and open communication to achieve a mutual solution to a problem.

Functional Structure

An organizational design where the company is divided into departments based on special functions such as marketing, finance, and production.

Technical Knowledge

Specific expertise or skills related to a particular field or technology, necessary for performing tasks and solving problems within that domain.

Similar Skills

Abilities or competencies that are alike or nearly identical among individuals or within groups.