Monday 14 October Answer

Today we have a question relating to the new 2019 syllabus for F2.

The question was:

Which one of the following is not a characteristics of Ordinary Shares?

This question relates to ‘A: Financing Capital Projects’ and is a slightly different version of the question in one of our free mock exams.

The correct answer was Wow, with…

First inline for dividend payments

Ordinary shares do not have a maturity date and they provide a claim to the income and assets of the company.

While the percentage of the company held by the shareholder can decrease if new shares are issued, the shareholding itself cannot be diluted.

First inline for dividends is a characteristic of preference dividends.

For more free questions use our Free CIMA Mock Exams for the 2019 syllabus use the menu above to access our little shop, at the same time you’ll have the option to upgrade to our + package which includes 50% more questions, feedback and both revision and timed assessment modes plus much more.

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