Preferred shares do not have the right to vote in corporate elections. Since the question asks for which of the items is not a characteristic of this type of share, this is the correct answer.
Preferred shares (and common shares) do not have a principal repayment. Since the question asks for which is not a characteristic, this answer is incorrect because this is a characteristic of preferred shares.
In the case of a liquidation preferred shares have a superior claim to the assets of the company compared to common shareholders. Since the question asks for which is not a characteristic, this answer is incorrect because this is a characteristic of preferred shares.
The dividends that are paid to preferred shareholders are not tax deductible. Since the question asks for which is not a characteristic, this answer is incorrect because this is a characteristic of preferred shares.
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