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
AnswerAnswer: 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.