Preferred shares, which have the most restrictive features, are:
A)Noncumulative, non-participating, nonvoting.
B)Non-participating, cumulative, nonvoting.
C)Fully participating, nonvoting.
D)Noncumulative, fully participating, nonvoting.

Question

Quizplus · Accepted Answer

Noncumulative, non-participating, nonvoting preferred shares have the most restrictive features as they do not accumulate unpaid dividends, do not participate in additional profits beyond the fixed dividend, and do not have voting rights.

Preferred Shares, Which Have the Most Restrictive Features, Are