Vidyalelo
Commerce · Q105

Business and Commerce

Graduate and Post Graduate · Commerce · question 105

Q105

The preference shares holders who have no claim for the arrears of dividend are _________ preference shares.

A.
Cumulative
B.
Non-cumulative
Answer
C.
Redeemable
D.
Irredeemable

Answer: Option B

Solution

Answer: Option B
Solution:
The preference shares holders who have no claim for the arrears of dividend are Non-cumulative preference shares. Non-cumulative preference shares are those type of preference shares, which have right to get fixed rate of dividend out of the profits of current year only. They do not carry the right to receive arrears of dividend.