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Question 21 Which of the following statements is NOT true about ordinary shares: The potential gains for ordinary shareholders are unlimited. Ordinary shareholders expect a low rate of return as their investments are considered less risky in comparison to preference shareholders and lenders. Ordinary shareholders receive dividends only after lenders and preference shareholders have received their interest and dividends. Ordinary sharcholders are not entitled to a fixed rate of dividends. 3 pts

Which of the following is true regarding the UK Corporate Governance Code: It is a code of best practice which sets out a number of key principles underpinning its approach. The Code is not fully backed by the London Stock Exchange. Publicly listed companies in the UK do not have to comply with the requirements of the Code. The Code is criticized for providing less transparency in corporate affairs, resulting in less information available to sharcholders.

Question 60% of communication is... __ A. In the eyes B. Non-verbal C. Written

Question A customer asks for a product which you know is out of stock. Pick the best response. A. We've got one left. Sorry. B. I'm sorry. I'm afraid we're out of that product. Would you like me to order another one in for you? C C. Idon't know but my colleague can help you. Bye C

Question Word-of-mouth reviews are an ineffective way of spreading reviews of your organisation A. False-they are well trusted and spread quickly C B. True-people only trust review websites C C. False-people trust them but they never spread far C