How Many of the Following Statements, Relating to Ordinary Shareholders

question 4

Multiple Choice

How many of the following statements, relating to ordinary shareholders, are true?
Ordinary shareholders generally have greater risks than preference shareholders.
Ordinary shareholders are the last to receive a distribution if the company is wound up.
Ordinary shareholders have a greater opportunity for gain if the company is profitable than preference shareholders.
Ordinary shareholders have the right to vote at meetings of the company.

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Will to Develop

The determination and commitment shown by individuals or societies to improve economic conditions, infrastructure, and standards of living through innovation and investment.

Economic Growth

An increase in a country’s ability to produce goods and services, reflected in an increase in real GDP over time.

Human Capital Investment

The process of increasing the value of a workforce through education, training, and health improvements.

Technologies

The application of scientific knowledge for practical purposes, especially in industry and everyday life.