passwella.
Menu

WAEC Economics 2003 Question 27

Question 27

Business Organisations

The shares which do not carry any fixed rate of dividend are known as

  1. A.debentures
  2. B.cumulative preference shares
  3. C.ordinary shares
  4. D.participating preference shares.
Show the answer and explanation

Answer: C (ordinary shares)

Explanation

Ordinary shareholders get a dividend that varies with profit; preference shares carry a fixed rate.