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Question
State, with reason, whether the following statement is True or False.
Preference shareholders have normal voting rights.
Options
True
False
Solution
(2) It is ownership capital but less riskier due to guaranteed returns and payment of capital.
(3) It is temporary by nature, generally returned after a period of time. It is therefore safe capital.
(4) Preference shares earn a fixed rate of dividend.
(5) They have no participation in management or fight to attend meetings.
(6) They may vote by attending meetings especially called for them on a matter involving their interests if the need arises.
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Long Answer Question
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