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Which type of share hold only one right and that of...

This question belongs to Commerce Accounting
Accounting
?

Which type of share hold only one right and that of a fixed rate of dividend

Answer & Solution
Correct Answer: Option D
In accounting, a Non-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.
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1 Comment
Bhumika Sharma
Bhumika Sharma 3 years ago
the answer is non-participating because participating shareholders get additional dividends out of surplus profits other than fixed rate of dividend.
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