Post Utme Joseph Ayo Babalola University 2017 Commerce Question 33

Practice objective / multiple choice question 33 from the 2017 Post Utme Joseph Ayo Babalola University Commerce examination.

Post Utme Joseph Ayo Babalola University 2017 Commerce Objective / Multiple Choice
Question 33 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2017 • COMMERCE • objective

A company's memorandum of association may provide for the issue of preference shares. What are the characteristics of preference shares?

Answer Options

Correct Answer A. Preference shares have a fixed dividend rate and are redeemable at the option of the company.
B. Preference shares have a fixed dividend rate, but are not redeemable.
C. Preference shares are redeemable, but do not have a fixed dividend rate.
D. Preference shares have neither a fixed dividend rate nor are redeemable.
Correct Answer
A
Correct Option:
Preference shares have a fixed dividend rate and are redeemable at the option of the company.

About This Question

This is Post Utme Joseph Ayo Babalola University 2017 Commerce Question 33. It is one of the objective questions from the 2017 Post Utme Joseph Ayo Babalola University Commerce examination.

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