English

Preference shareholders are ______ of the Company. - Accounts

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Question

Preference shareholders are ______ of the Company.

Options

  • Creditors

  • Owners

  • Customers

MCQ
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Solution

Preference shareholders are Owners of the Company.

Explanation:

Preference shareholders are owners of the company as they invest in its share capital. They enjoy preferential rights to receive dividends and repayment before equity shareholders but usually have no voting rights.

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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.151]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
OBJECTIVE TYPE QUESTIONS | Q (ii) | Page 6.151
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