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anonymous

  • one year ago

Which statement is NOT true about equity shareholders? A: They are owners of the business. B: They are given first priority while paying dividends. C: They have a right to vote on business matters. D: They receive dividend only if the business makes profits. E: They hold ordinary shares and not preference shares.

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  1. IrishBoy123
    • one year ago
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    read B & E closely

  2. anonymous
    • one year ago
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    OK

  3. anonymous
    • one year ago
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    Which one you thank it is

  4. IrishBoy123
    • one year ago
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    you first!!

  5. IrishBoy123
    • one year ago
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    remembering pref shares are like special shares in one sense

  6. anonymous
    • one year ago
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    b

  7. IrishBoy123
    • one year ago
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    i would agree pref shareholders get paid before normal equity but they have limited right to dividends, usually a fixed coupon, and often limited voting rights

  8. anonymous
    • one year ago
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    so its c

  9. IrishBoy123
    • one year ago
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    C is ambiguous they have votes that pertain to the business, eg remuneration for board. but they meet once a year and are not involved in day to day decisions. so C is partly true but mostly not true B however is not true if there are other types of equity holders, such as prefs who get paid first. not a very well worded question

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