O-LevelAccountingThe fundamentals of accounting7707/11 · May/June 2012 · Q251 Mark
What is a feature of preference shares?
AThe annual dividend is a fixed percentage of the profit of the company.
BThe capital is returned before ordinary share capital if the company closes down.
CThe holders are usually entitled to attend and vote at shareholders' meetings.
DThe percentage of dividend varies according to the profit of the company.
✓ Correct answer
B: The capital is returned before ordinary share capital if the company closes down.
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