Question : Unless otherwise stated, a prefrence share is always deemed to be:
Option 1: Cumulative, Participating and Non Convertible
Option 2: Non-Cumulative, Non-Participating and Non-Convertible
Option 3: Cumulative, Non-Participating and Non-Convertible
Option 4: Non-Cumulative, Participating and Non-Convertible
Answer (1)
20th Jan, 2024
Correct Answer: Cumulative, Non-Participating and Non-Convertible
Solution : Preference shares are usually assumed to be cumulative, non-participating, and non-convertible unless specifically specified otherwise.
Hence the correct answer is option 3.
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