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Question
Equity share capital represents ______.
Options
Fixed capital of the company
Working capital of the company
Permanent capital of the company
Fluctuating capital of the company
MCQ
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Solution
Equity share capital represents permanent capital of the company.
Explanation:
Equity share capital represents the permanent capital of a company because:
- It remains invested in the business as long as the company exists.
- It is not repayable except in the case of liquidation.
- Equity shareholders are the true owners of the company, and their capital forms the base for long-term financing.
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