Question on: JAMB Commerce - 1994
Which of the following groups is paid first when a firm liquidates?
A
Preference shareholders
B
Debenture holders
C
Ordinary shareholders
D
Cumulative preference shareholders
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Correct Option: A
preference shareholders is a term used in venture capital contracts to specify which investors get paid first and how much they get paid in the event of a liquidation event such as the sale of the company.
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