Which characteristic gives the term preference shareholder its distinct name? Preferred shareholder gets its name from its unique feature that shareholders of such shares are given first preference in terms of payment in case the business.

dividends

Explanation:

Dividends are not liability of the firm. The preferred dividends are differed. The dividends and preferred dividends must be paid to the individual stakeholders so that equal share share can reach out to the individual owner before the common shareholders can receive any monetary gain. Dividends are the taxes that are not included in the business expenses but it is included as corporate tax. The dividends by the shareholders are included with the tax.