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प्रश्न
Justify the following statement.
Equity share capital is risk capital.
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उत्तर
Justification:
- Equity shareholders own the company and bear ultimate risk associated with the ownership.
- The equity shares do not enjoy preference for dividend. Also, they do not have priority for repayment of capital at the time of winding up of the company.
- Equity shareholders do not carry any fixed commitment of dividend. They are paid dividend at the rate recommended by Board of Directors.
- If there is no profit, no dividend will be payable. Similarly, if there is less profit, lesser dividend will be paid.
- The fortune of equity shareholders is tied up with the ups and downs of the company.
- They are described as ‘shock absorbers’ when company has financial crisis.
Hence, equity share capital is risk capital.
संबंधित प्रश्न
______ participate in the management of their company.
______ shares are issued free of cost to existing equity shareholders.
Debenture holders are ______ of the company.
Write a word or a term or a phrase which can substitute the following statement.
The holders of these shares are entitled to participate in the surplus profit.
Write a word or a term or a phrase which can substitute the following statement.
The value of share which is written on the share certificate.
Equity shareholders enjoy a fixed rate of dividend.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Complete the sentence.
Bonus shares are issued as gift to ______
Answer in one sentence.
What are preference shares?
Answer in one sentence.
What are cumulative preference shares?
Justify the following statement.
Equity shareholders are real owners and controllers of the company.
Justify the following statement.
Preference shares do not carry any voting rights.
State any 4 features of shares.
The dividend is paid first to ______ shareholders.
Explain the following term/concept in detail:
Equity shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
