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Which of the Following Is an Advantage of Preference Shares

Question 54

Multiple Choice

Which of the following is an advantage of preference shares?


A) Preference shareholders are guaranteed that they will not take a loss on their investment.
B) Preference shareholders generally receive a fixed amount of dividends before ordinary shareholders do.
C) Preference shareholders have higher voting rights than ordinary shareholders.
D) Preference shareholders may sell their shares for a price higher than that of ordinary shares.

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