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Question

________will be entitled to receive arrears of their dividend.

A
Cumulative Preference Share
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B
Non-Cumulative Preference Share
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C
Convertible Debenture
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D
All of the above
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Solution

The correct option is A Cumulative Preference Share
A preference share is said to be cumulative when the arrears of dividend are cumulative and such arrears are paid before paying any dividend to equity shareholders including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.

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