Home » Classroom » JAMB Commerce 1994 Question

Which of the following groups is paid first whe... - JAMB Commerce 1994 Question

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
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.
Please share this, thanks:

Add your answer

Notice: Posting irresponsibily can get your account banned!

No responses