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Question
Which shareholders are returned their capital after some specified time?
Options
Redeemable Preference Shares
Irredeemable Preference Shares
Cumulative Preference Shares
Participating Preference Shares
MCQ
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Solution
Redeemable Preference Shares
Explanation:
Redeemable preference shares are those shares where the capital is repaid to shareholders after a specified period, as per the terms of issue. These shares are commonly issued with a fixed maturity date and are redeemed either at par or at a premium.
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.198]
