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JAMB Commerce 2021 Objective — Question 22

Question 22 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2021 Objective paper, with the correct answer and a full explanation.

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22. The last shareholders to be considered in distribution of dividend is a. Ordinary shareholders b. Founder shareholders c. Preference shareholders d. Redeemable shareholders

  • A. Ordinary shareholders
  • B. Founder shareholdersCorrect
  • C. Preference shareholders
  • D. Redeemable shareholders

Explanation

In the ranking for payment of dividend, founder shareholders are always considered last and typically receive whatever profit remains (the 'lion's share' goes to others first).

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