Advertisements
Advertisements
प्रश्न
Justify the following statement.
Equity share capital is risk capital.
Advertisements
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
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
______ participate in the management of their company.
______ shares are issued free of cost to existing equity shareholders.
Select the correct answer from the options given below and rewrite the statement.
The holder of preference share has right to receive ______ rate of divided.
The holder of ______ preference shares has the right to convert their shares into equity shares.
______ is paid on borrowed capital.
Write a word or a term or a phrase which can substitute the following statement.
The ‘real masters’ of the company.
Equity shareholders enjoy a fixed rate of dividend.
State whether the following statement is true or false.
Equity shareholders are described as ‘shock absorber’ when company has financial crisis.
Answer in one sentence.
What is a share?
Answer in one sentence.
What are Equity Shares?
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
Justify the following statement.
Preference shares do not carry any voting rights.
State the features of equity shares.
The dividend is paid first to ______ shareholders.
Explain the following term/concept in detail:
Equity shares
Explain the following term/concept in detail:
Preference shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
