Equity Investments Q141
0. Which of the following statements about participating preference shares is least accurate?
- A
They entitle shareholders to participate in additional dividends if the company’s profits exceed a predetermined level.
- B
They entitle shareholders to participate in corporate decisions through voting rights.
- C
They entitle shareholders to participate in additional distribution of the company’s assets upon liquidation.
- Option : B
- Explanation : Participating preference shares do not entitle the shareholders to participate in corporate decisions through voting rights. Options A and C are correct.
