Post Utme Delsu 2025 Commerce Question 12

Practice objective / multiple choice question 12 from the 2025 Post Utme Delsu Commerce examination.

Post Utme Delsu 2025 Commerce Objective / Multiple Choice
Question 12 POST_UTME_DELSU • 2025 • COMMERCE • objective

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

Answer Options

A. Preference shares have a higher dividend rate than ordinary shares.
B. Preference shares have a higher voting power than ordinary shares.
Correct Answer C. Preference shares have a higher claim on assets in the event of liquidation.
D. Preference shares are more easily transferable than ordinary shares.
Correct Answer
C
Correct Option:
Preference shares have a higher claim on assets in the event of liquidation.

About This Question

This is Post Utme Delsu 2025 Commerce Question 12. It is one of the objective questions from the 2025 Post Utme Delsu Commerce examination.

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