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.

---

Definitions:

Reflex Response

An automatic, involuntary reaction to a specific stimulus, occurring without conscious thought as part of the body's defense mechanisms.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the strength of behavior as a result of its consequences.

Unconditioned Response

A spontaneous, innate response to a stimulus that happens without any previous learning or conditioning.

Unconditional Reinforcement

Unconditional reinforcement refers to a method of reinforcing desired behavior by consistently providing a positive outcome, without any conditions.