Preference Shares

Q.

As compared to Equity shareholders, _______________________ don’t have voting rights.

1. None of the above

2. Both preference shareholders and loan providers

3. Preference shareholders

4. Loan providers

Q. Preference shares are called securities, as these shares have the features of equity shares and debentures.

1. convertible
2. irredeemable
3. hybrid
4. participating

Q.

What are equity shares ? Discuss its various features.

Q.

Is ‘reserve Capital’ a Part of ‘unsubscribed Capital’ or ‘uncalled Capital’?

Q.

State the limitations of preference shares.

Q.

The term 'redeemable' is used for which of the following source of finance?

1. Equity shares

2. Loans

3. Preference shares

4. Retained earnings

Q.

What is meant by preference shares ? Explain the merits of preference shares ?

Q.

Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

1. True

2. False

Q.

Which of the following statement is incorrect?

1. Preference shareholders have no voting rights at meetings of shareholders

2. At the time of liquidation of a company, preference shareholders are entitled to receive their investments before equity shareholders

3. None of the above

4. Preference shareholders have a priority right to receive dividends

Q.

What is meant by equity shares? Briefly explain its merits.

Q.

Discuss the merits of preference shares.

Q.

Niyati wants higher and certain returns and also wants the safety of capital. What will she choose amongst the preference share and equity share ?

Q.

Which shares provide a steady income in the form of fixed rate of return but with low risk and safety of investment?

1. Debentures

2. Preference shares

3. Equity shares

4. None of the above

Q. Companies do not offer any against preference shares.

1. secuirty
2. shares
3. investment
4. assets

Q.

Do preference shareholders get an upper hand during the time of liquidation of the company?

1. False

2. True

Q.

How do preference shares resemble debentures?

Q. The Reverse Mortgage scheme is launched to give benefit to which of the following groups of the society?

1. Govt employees
2. Senior citizens
3. Unemployed youth
4. War widows

Q. Preference shareholders are entitled to a fixed rate of _________.

1. Interest
2. Dividend
3. Coupon
4. Capital

Q.

How do I access the equity in my home?

Q.

How much equity do I need for a home equity loan?

Q. shares provide a steady income in the form of a fixed rate of return but with low risk and safety investment.

1. Equity
2. Preference
3. Cumulative
4. Participating

Q. Preference shares are helpful for raising funds for a long period since they do not create any charge over the assets.

1. True
2. False

Q. ___capital is known as secured capital

Q. Which of the following can be utilized for redemption of preference shares?

1. The proceeds of fresh issue of equity shares.
2. The proceeds of issue of debentures.
3. The proceeds of issue of fixed deposit.
4. The sale proceeds of investments.

Q. Rate of dividend on preference shares is higher than the rate of interest on debentures.

1. False
2. True

Q. Preference shares are suitable for the investors who want higher returns and are willing to take risks.

1. True
2. False

Q. Which of the following is not a source of redemption of preference shares?

1. Divisible profit.
2. Securities premium account.
3. Realization of asset.
4. Proceeds of fresh issue.

Q.

CAPITAL SUBSCRIPtion

bankers of company receive application money ? what is application money referred for? BST

Q. There is fixed regular income in investment of preference share holding

1. True
2. False

Q. When a company is liquidated preference shareholders have a preferential right of repayment over equity shareholders.

1. False
2. True