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Question
Preference shares may be ______.
Options
Secured or unsecured
Convertible or non-convertible
Cumulative or non-cumulative
Participating or non-participating
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Solution
Preference shares may be cumulative or non-cumulative and participating or non-participating.
Explanation:
Preference shares may be cumulative or non-cumulative, redeemable or irredeemable, participating or non-participating, etc.
RELATED QUESTIONS
What are Preference Shares?
The term 'redeemable' is used for ______.
Which of the following is also known as hybrid financing?
Which of the following are the features of preference shares?
Distinguish between equity shares and preference shares.
Distinguish between cumulative and non-cumulative preference shares.
Preference shares carry preferential rights for payment of dividend and repayment of capital.
Dividends on cumulative preference shares go on accumulating unless paid.
Discuss the importance of preference shares as sources of long-term finance.
Explain the disadvantages of preference shares.
