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The main characteristics of an ordinary shares are

Economics
WAEC 2008

The main characteristics of an ordinary shares are

  • A. maximum risk, fixed dividends, voting rights
  • B. minimum risks, fixed dividends, no voting rights
  • C. maximum risks, variable dividends, voting rights
  • D. minimum risks. fixed dividends, no voting rights
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Correct Answer: Option C
Explanation

Ordinary shareholders are owners of the company, hence possess voting rights in the selection of board members, they take the maximum risks of the business, and their dividends vary and mostly paid only after all other classes of shares have been paid.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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