14 Views

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


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

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.

Related Questions

Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024) | 30+ Specializations | AI Powered Learning & State-of-the-Art Facilities
Amrita University B.Tech 2026
Apply
Recognized as Institute of Eminence by Govt. of India | NAAC ‘A++’ Grade | Upto 75% Scholarships
Amity University, Noida | Law...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Great Lakes Institute of Mana...
Apply
Application deadline: 4th Dec | Globally Recognized by AACSB (US) & AMBA (UK) | 17.8 LPA Avg. CTC for PGPM 2025
Manav Rachna University Law A...
Apply
Admissions open for B.A. LL.B. (Hons.), B.B.A. LL.B. (Hons.) and LL.B Program (3 Years) | School of Law, MRU ranked No. 1 in Law Schools of Excelle...
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC | Ranked 33rd by NIRF 2025
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books