Question : The shares on which there is no any pre fixed rate of dividend, but the rate of dividend is fluctuating every year according to the availibility of profit, such shares are called :
Option 1: Preference Share
Option 2: Equity Share
Option 3: Non cumulative Preference share
Option 4: Non Guaranteed Preference share
Correct Answer: Equity Share
Solution : The shares on which the rate of dividend is not pre-determined, but instead varies annually in accordance with the availability of profits, are known as Equity Shares.
Hence the correct answer is option 2.
Question : The share on which there is no pre-fixed rate of dividend is decided, but the rate of dividend fluctuates every year according to the availability of profits such shares are called ________.
Option 1: Equity shares
Option 2: Non – cumulative preference shares
Option 3: Non – convertible preference shares
Option 4: Non – Guaranteed preference shares
Question : Preference shares, in case the holders of these have the right to convert their preference shares into equity shares at their option according to the terms of issue, such shares are called _______.
Option 1: Cumulative preference share
Option 2: Non Cumulative preference shares
Option 3: Convertible preference shares
Option 4: Non-convertible preference shares
Question : Preference shares are referred to as such if the holder has the opportunity, within the terms of the issuance, to convert their prefrence shares into equity shares are called-
Option 1: Cumulative Preference share
Option 2: Convertible Preference share
Option 3: Non Convertible Preference share
Option 4: Non Cumulative Preference share
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile