Discuss Two Reasons Why Preference Shares Would Be Viewed as Less

question 16

Essay

Discuss two reasons why preference shares would be viewed as less risky than ordinary shares to investors.

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Definitions:

Whitelisting

A process in which a company identifies acceptable software and permits it to run, and either prevents anything else from running or lets new software run in a quarantined environment until the company can verify its validity.

Fully Configured

A state where a system, device, or software has been set up with all necessary components and settings for it to function as intended.

Communication Links

The physical or logical connections between communicating devices or systems, allowing data transfer.

Physical Plant Operations

Activities and tasks focused on the maintenance and management of the physical facilities, infrastructure, and assets of an organization.