Question : Which of the following shareholders have a right to receive dividends first?
Option 1: Equity Share holder
Option 2: Debenture Holder
Option 3: Preference Share Holder
Option 4: None of the Above
Correct Answer: Preference Share Holder
Solution : Preference shareholders have a right to receive dividends as compared to other shareholders of the company.
However, equity shareholders are also entitled for dividends once it is announced by the company, so it is the discretion of the company to distribute dividend to the equity shareholders, hence it is not considered as a right of equity shareholders to receive dividends.
Hence, the correct answer is option 3.
Question : Which shareholders have voting right in all circumstances :
Option 1: Preference Shareholders
Option 2: Equity Shareholders
Option 3: Debenture Holders
Option 4: None of the above
Question : What among the following is not a characteristic of a common share?
Option 1: right to receive interest
Option 2: right to receive payment after preference shareholders
Option 3: right to vote
Question : What among the following is not a characteristic of a preference share?
Option 1: right to receive dividend
Option 2: voting right
Option 3: right to receive interest
Option 4: All of the above
Question : A company may issue __________.
Option 1: Equity shares
Option 2: Preference shares
Option 3: Equity and preference share
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