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:

Unit of Output

The basic measure of productivity or product which is generated by a production process, operation, or project.

Competitive Market Economy

A system where market forces govern the production, distribution, and pricing of goods and services, featuring many buyers and sellers and free entry and exit from the market.

Least-Cost

A principle or method of minimizing the costs of production or operation while achieving the desired output or quality.

Production Technique

Methods or processes used in the creation of goods or services, often focusing on increasing efficiency or quality.