could you please explain why the answer is A. There are a number of ways in which investors can take an interest in a company and such different interests have different rights attached to them. Which of the following NORMALLY participate in surplus capital?
A. ordinary shares B. preference shares C. debentures secured by a fixed charge D. debentures secured by a floating charge
Because preference shares normally carry the right only to the repayment of capital and both types of debenture are creditors of the company and not shareholders