Question : What among the following is not a preference share?
Option 1: Redeemable Preference Share
Option 2: Participating Preference share
Option 3: Irredeemable Preference Share
Option 4: Convertible Preference share
Correct Answer: Irredeemable Preference Share
Solution : Preference shares that cannot be redeemed by a company are known as irredeemable preference shares. Companies cannot issue irredeemable preference shares in India.
Hence the correct answer is option 3.
Question : Which shareholders are returned their capital after some time?
Option 1: Redeemable Preference Shares
Option 2: Irredeemable Preference Shares
Option 3: Cumulative Preference Shares
Option 4: Participating Prefrence Shares
Question : Unless otherwise stated, a prefrence share is always deemed to be:
Option 1: Cumulative, Participating and Non Convertible
Option 2: Non-Cumulative, Non-Participating and Non-Convertible
Option 3: Cumulative, Non-Participating and Non-Convertible
Option 4: Non-Cumulative, Participating and Non-Convertible
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
Question : Which shareholder returns their capital after some specified time?
Option 1: Redeemable preference shares
Option 2: Non – Redeemable preference shares
Option 3: Cumulative preference shares
Option 4: Participating preference shares
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile