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Commerce · Q519

Accounting

Graduate and Post Graduate · Commerce · question 519

Q519

Which type of share hold only one right and that of a fixed rate of dividend

A.
Cumulative
B.
Non-cumulative
C.
Participating
D.
Non-participating
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In accounting, a Non-participating share holds only one right, which is that of a fixed rate of dividend.

Non-participating shares do not have the additional right to participate in any further profits beyond the fixed dividend rate.

Therefore, the correct option is Non-participating.