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Question
Preference shareholders are called ______.
Options
Partners of the company
Owners of the company
Executives of the company
Guardians of the company
MCQ
Fill in the Blanks
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Solution
Preference shareholders are called owners of the company.
Explanation:
- Preference shareholders, like equity shareholders, are considered owners of the company because they invest capital and have a claim on the company’s assets and profits.
- However, they have limited rights compared to equity shareholders:
- They receive a fixed dividend.
- They have no voting rights on ordinary matters, unless their rights are affected.
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