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JAMB Accounting 2015 Objective — Question 40

Question 40 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

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The ordinary shareholders enjoy the following rights except to

  • A. vote at annual general meetings
  • B. elect the board of Directors
  • C. participate in additional issue of shares
  • D. receive dividends at a predetermined rateCorrect

Explanation

Ordinary shareholders do not receive dividends at a predetermined rate — that is a feature of preference shares; a company's memorandum does not guarantee ordinary shareholders a fixed dividend rate.

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