Preference shareholders usually have a right to
Answer and explanation
Correct answer: D. a fixed dividend paid before the ordinary one
- Step 1: Preference shares rank ahead of ordinary shares for dividends. Answer: a fixed dividend paid before the ordinary one. Why not the others: manage the company day to day: Management is by directors. a variable dividend based on profit: That is typical of ordinary shares. unlimited voting rights at meetings: Preference shares normally carry limited voting rights.
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