JAMB - Commerce (1994 - No. 7)
Which of the following groups is paid first when a firm liquidates?
Preference shareholders
Debenture holders
Ordinary shareholders
Cumulative preference shareholders
הֶסבֵּר
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.