[amp_mcq option1=”Preference dividend is not tax deductible” option2=”The claim of preference shareholders is prior to the claim of equity shareholders” option3=”Preference shareholders are not the owners of the concern” option4=”All of the above” correct=”option4″]<\/p>\n
The correct answer is D. All of the above.<\/p>\n
Preference shareholders are a type of shareholder who have a preferential claim on the company’s assets and dividends. This means that, in the event of a liquidation, preference shareholders are paid out before equity shareholders. They also have a preferential claim on dividends, meaning that they must be paid a dividend before equity shareholders can receive any dividends.<\/p>\n
Preference dividends are not tax deductible for the company, which means that the company cannot deduct the amount of the dividend from its taxable income. This makes preference dividends more expensive for the company to pay than equity dividends.<\/p>\n
Preference shareholders are not the owners of the company. They do not have the same rights as equity shareholders, such as the right to vote on company matters.<\/p>\n
In conclusion, preference shareholders have a preferential claim on the company’s assets and dividends, their dividends are not tax deductible for the company, and they are not the owners of the company.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Preference dividend is not tax deductible” option2=”The claim of preference shareholders is prior to the claim of equity shareholders” option3=”Preference shareholders are not the owners of the concern” option4=”All of the above” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-46310","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n