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Question
______ participate in the management of their company.
Options
Preference shareholders
Depositors
Equity shareholders
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Solution
Equity shareholders participate in the management of their company.
Explanation:
Equity shareholders are the real owners of the company and have voting rights. Therefore, they can participate in the management and decision-making of the company.
RELATED QUESTIONS
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.
Select the correct answer from the options given below and rewrite the statement.
______ are residual claimants against the income or assets of the company.
______ shares are issued free of cost to existing equity shareholders.
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______ 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.
Write a word or a term or a phrase which can substitute the following statement.
A document of title of ownership of shares.
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The value of share which is written on the share certificate.
Complete the sentence.
Bonus shares are issued as gift to ______
Answer in one sentence.
What are preference shares?
Study the following case/situation and express your opinion.
Mr. Satish is a speculator. He desires to take advantage of growing market for company's product and earn handsomely
- According to you which type of share Mr. Satish will choose to invest?
- What does he receive as return on investment?
- State any one right which he will enjoy as a shareholder.
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.
Justify the following statement.
Equity share capital is risk capital.
The dividend is paid first to ______ shareholders.
Justify the following statement.
Equity shareholder enjoys certain rights.
Explain the following term/concept in detail:
Preference shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
