Post Utme Summit University 2017 Commerce Question 30

Practice objective / multiple choice question 30 from the 2017 Post Utme Summit University Commerce examination.

Post Utme Summit University 2017 Commerce Objective / Multiple Choice
Question 30 POST_UTME_SUMMIT_UNIVERSITY • 2017 • COMMERCE • objective

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

Answer Options

A. Redeemable preference shares have a fixed dividend rate.
Correct Answer B. Redeemable preference shares have a variable dividend rate.
C. Redeemable preference shares have a higher claim on assets than ordinary shares.
D. Redeemable preference shares have a lower claim on assets than ordinary shares.
Correct Answer
B
Correct Option:
Redeemable preference shares have a variable dividend rate.

About This Question

This is Post Utme Summit University 2017 Commerce Question 30. It is one of the objective questions from the 2017 Post Utme Summit University Commerce examination.

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