Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) A redeemable preference share that is redeemable by the holder is classified as equity if it is not probable that redemption will occur.
B) A redeemable preference share with a fixed redemption date is classified as debt.
C) Sole proprietorships, partnerships and limited companies can all raise equity finance from owners' contributions but only limited companies can issue ordinary shares.
D) A company distributes profits in the form of dividends, which is a reduction in retained profits, whereas distributions of profits by partnerships and sole proprietors are reductions in owners' equity.