Commerce
JAMB 1994
Which of the following groups is paid first when a firm liquidates?
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A.
Preference shareholders
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B.
Debenture holders
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C.
Ordinary shareholders
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D.
Cumulative preference shareholders
Correct Answer: Option A
Explanation
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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