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WAEC Economics 2008 Question 18

Question 18

Business Organisations

The main characteristics of an ordinary share are

  1. A.maximum risk, fixed dividends, voting rights
  2. B.maximum risk, fixed dividends, no voting rights
  3. C.maximum risk, variable dividends, voting rights
  4. D.minimum risk, fixed dividends, no voting rights.
Show the answer and explanation

Answer: C (maximum risk, variable dividends, voting rights)

Explanation

Ordinary shareholders bear the most risk, receive dividends that vary with profit, and can vote.