Which of the Following Statements Concerning Preference Shares Is Correct

question 83

Multiple Choice

Which of the following statements concerning preference shares is correct?

• A)Preference shares generally are more costly to the firm than ordinary shares.
• B)Most issues of preference shares have a cumulative feature.
• C)Preference share dividend payments are tax-deductible.
• D)Preference shares are a riskier form of capital to the firm than bonds.

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Definitions:

Doctrine Of Containment

A foreign policy strategy aimed at preventing the expansion of communism beyond its existing borders during the Cold War.

George F. Kennan

An American diplomat and historian known for his influence on U.S. foreign policy, particularly his advocacy of the "containment policy" during the Cold War.

National Security Council

A U.S. executive agency responsible for advising the President on national security and foreign policies.

Traditional Isolationism

A foreign policy stance wherein a nation avoids involvement in the affairs and conflicts of other nations while focusing on its own development and issues.