Which type of share hold only one right and that of a fixed rate of dividend
A. Cumulative
B. Non-cumulative
C. Participating
D. Non-participating
Answer: Option D
Solution (By Examveda Team)
In accounting, aNon-participating share holds only one right, which is that of a fixed rate of dividend.Non-participating shares do not have the additional right to participate in any further profits beyond the fixed dividend rate.
Therefore, the correct option is Non-participating.
This Question Belongs to Commerce >> Accounting
the answer is non-participating because participating shareholders get additional dividends out of surplus profits other than fixed rate of dividend.