Post Utme Crawford University 2022 Commerce Question 27

Practice objective / multiple choice question 27 from the 2022 Post Utme Crawford University Commerce examination.

Post Utme Crawford University 2022 Commerce Objective / Multiple Choice
Question 27 POST_UTME_CRAWFORD_UNIVERSITY • 2022 • COMMERCE • objective

A company's articles of association may provide for the issue of preference shares. What is the main advantage of preference shares?

Answer Options

Correct Answer A. Preference shares have a higher dividend rate than ordinary shares
B. Preference shares have a higher voting power than ordinary shares
C. Preference shares have a higher claim on assets than ordinary shares
D. Preference shares have a lower risk than ordinary shares
Correct Answer
A
Correct Option:
Preference shares have a higher dividend rate than ordinary shares

About This Question

This is Post Utme Crawford University 2022 Commerce Question 27. It is one of the objective questions from the 2022 Post Utme Crawford University Commerce examination.

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