Grade 11 Exam > Grade 11 Questions > ____ share capital has priority both in repay...
Start Learning for Free
____ share capital has priority both in repayment of dividend as well as capital.
- a)Equity
- b)non preference
- c)Preference
- d)all of the above
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
____ share capital has priority both in repayment of dividend as well ...
Explanation:
When it comes to the repayment of dividend and capital, preference share capital has priority over other types of share capital. Here's a detailed explanation:
- Preference shares are a type of share capital that gives shareholders certain preferential rights over ordinary shareholders. These rights typically include a fixed dividend payment and priority in the repayment of capital in the event of liquidation.
- Equity shares represent ordinary share capital, which does not have any preferential rights. The dividend payment for equity shares is determined by the company's profitability and the discretion of the board of directors.
- Non-preference shares refer to shares that do not have any preferential rights or priority in dividend payment or capital repayment.
- When a company generates profits, it first pays dividends to preference shareholders before distributing any remaining dividends to equity shareholders.
- In case of liquidation or winding up of the company, preference shareholders have priority over equity shareholders in the repayment of capital. They are entitled to receive their capital back before equity shareholders receive any distribution.
Therefore, based on these points, it is clear that preference share capital has priority both in the repayment of dividend and capital.
View all questions of this test
When it comes to the repayment of dividend and capital, preference share capital has priority over other types of share capital. Here's a detailed explanation:
- Preference shares are a type of share capital that gives shareholders certain preferential rights over ordinary shareholders. These rights typically include a fixed dividend payment and priority in the repayment of capital in the event of liquidation.
- Equity shares represent ordinary share capital, which does not have any preferential rights. The dividend payment for equity shares is determined by the company's profitability and the discretion of the board of directors.
- Non-preference shares refer to shares that do not have any preferential rights or priority in dividend payment or capital repayment.
- When a company generates profits, it first pays dividends to preference shareholders before distributing any remaining dividends to equity shareholders.
- In case of liquidation or winding up of the company, preference shareholders have priority over equity shareholders in the repayment of capital. They are entitled to receive their capital back before equity shareholders receive any distribution.
Therefore, based on these points, it is clear that preference share capital has priority both in the repayment of dividend and capital.
|
Explore Courses for Grade 11 exam
|
|
Similar Grade 11 Doubts
Top Courses for Grade 11View all
____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? for Grade 11 2025 is part of Grade 11 preparation. The Question and answers have been prepared according to the Grade 11 exam syllabus. Information about ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Grade 11 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer?.
____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? for Grade 11 2025 is part of Grade 11 preparation. The Question and answers have been prepared according to the Grade 11 exam syllabus. Information about ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Grade 11 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Grade 11.
Download more important topics, notes, lectures and mock test series for Grade 11 Exam by signing up for free.
Here you can find the meaning of ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice ____ share capital has priority both in repayment of dividend as well as capital.a)Equityb)non preferencec)Preferenced)all of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Grade 11 tests.
|
|
Explore Courses for Grade 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup