[amp_mcq option1=”cumulative, participating and non-convertible” option2=”non-cumulative, non-participating and non convertible” option3=”cumulative, non-participating and non convertible” option4=”non-cumulative, participating and non convertible” correct=”option3″]<\/p>\n
The correct answer is C. cumulative, non-participating and non convertible.<\/p>\n
A preference share is a type of share that gives its holders a preference over ordinary shareholders in the payment of dividends and the distribution of assets in the event of liquidation. Preference shares are usually cumulative, which means that if a dividend is not paid in one year, it must be paid in full before any dividends are paid to ordinary shareholders in the following year. Preference shares are also usually non-participating, which means that they do not share in the profits of the company after the preference dividend has been paid. Finally, preference shares are usually non-convertible, which means that they cannot be converted into ordinary shares.<\/p>\n
Option A is incorrect because preference shares are not always cumulative. Option B is incorrect because preference shares are not always non-participating. Option D is incorrect because preference shares are not always non-convertible.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”cumulative, participating and non-convertible” option2=”non-cumulative, non-participating and non convertible” option3=”cumulative, non-participating and non convertible” option4=”non-cumulative, participating and non convertible” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-46994","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n