Shares which are not only entitled to a fixed preferential dividend but also participate in the surplus profits are known as | Faculties

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Q. Shares which are not only entitled to a fixed preferential dividend but also participate in the surplus profits are known as

(A) cumulative preference shares
(B) participating preference shares
(C) convertible preference shares
(D) non- participating preference shares

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✅ Correct Answer: (A) cumulative preference shares

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