BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -1. Cumulative preference shares: Cumulative preference shares are those shares on which a dividend goes on accumulating until it is fully paid. This means, if the dividend is not paid in one or more years due to inadequate profit, then such unpaid dividend gets accumulated.

Detailed explanation-2: -Cumulative Preference Share:-A Cumulative Preference Share:-A preference share is said to be cumulative when the arrears of dividend are accumulate and such arrears are paid before paying any dividend to equity shareholders.

Detailed explanation-3: -Cumulative preference shares give shareholders the right to receive cumulative dividend payouts from the company even if they are not profitable. These dividends will be counted as arrears in years when the company is not profitable. And will be paid in full from the year when the business is profitable.

Detailed explanation-4: -A cumulative dividend is a required fixed distribution of earnings made to shareholders. Preferred shares are the most common type of share class that provides the right to receive cumulative dividends.

Detailed explanation-5: -What Is Cumulative Preferred Stock? Cumulative preferred stock is a type of preferred stock with a provision that stipulates that if any dividend payments have been missed in the past, the dividends owed must be paid out to cumulative preferred shareholders first.