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WorksheetsPreference Shares
Total questions: 15
Worksheet time: 9mins
Preference shares are shares certain _____ rights.
Privilege
Ordinary
Dividend is paid to the preference shareholders depending on the profit percentage.
True
False
In the event of winding up, preference shareholders are paid back on priority basis.
True
False
Preference shares are hybrid shares combining features of both ______ & _____
Mutual Funds, Bonds
Equity Shares , Bonds
Debentures, Mutual Funds
Equity Shares , Debentures
_____ Preference shares , dividends are carried forward in the next year, if failed to pay.
Non-Cumulative
Cumulative
Arrears of dividend must be paid before the dividend on any other class.
False
True
Unless, otherwise stated preference shares are non-cumulative.
True
False
In which of the following, preference share dividends are non carried forward.
Cumulative Shares
Non- Cumulative Shares
Non- Participating preference shares do not enjoy ___________
the right to vote
the right to get dividend
the right to get dividend out of surplus profit
the right to get interest out of surplus profit
Holders of Convertible Preference Shares can get the preference shares converted to _____ after a fixed period.
Debentures.
Equity Shares
Liquid Cash
The holders of Irredeemable preference shares, can redeem their investment before the winding up of the company.
True
False
As per Companies Act, 2013, lays down that preference shares cannot be issued for a period of more that ____ years. Therefore, companies cannot issues preference shares.
Fifty
Twenty
Thirty
Which of the following are the safer form of Investment.
Equity Shares
Preference Shares
Which of the following reap sure returns.
Equity Shares
Preference Shares
Which of the following shares are expensive to purchase.
Equity Shares
Preference Shares.
