When there is no profit in one year or the profit of a company is not enough to pay the fixed dividend on preference shares, the arrears of dividend are to be carried forward and paid before a dividend is paid on the ordinary shares. The is called :

All India Bar Examination (AIBE) 13-XIII Previous Year Question Papers with Answers

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70.

A: Participating preference shares

B: cumulative preference shares

C: Non-cumulative preference shares

D: Non-Participating preference shares

The answer is: A

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