JAMB Accounting 2018 Objective — Question 22

Question 22 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

The main difference between ordinary and preference shareholders is that

A. the former have voting right while the latter do notCorrect
B. in the case of winding up, the former are paid first before the latter
C. the latter are not members of the company while the former are
D. the former receive dividends while the latter do not

Explanation

In most cases, a preference shareholder does not have a voting right in the company, unlike an ordinary shareholder.

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