Question

A preference share is one …. 

(i) which carries preferential right with respect to payment of dividend at fixed rate 

(ii) which carries preferential right with respect to repayment of capital on winding up 

(a) Only (i) is correct 

(b) Only (ii) is correct 

(c) Both (i) and (ii) are correct 

(d) Both (i) and (ii) are incorrect

Answer 1

(c) Both (i) and (ii) are correct