Advertisements
Advertisements
Question
Justify the following statement.
Equity shareholders are real owners and controllers of the company.
Advertisements
Solution
- Equity shareholders participate in the general meetings and management of their company.
- They are allowed to vote on all matters discussed at the general meeting.
- They elect their representatives to manage the company.
- Equity Shares do not enjoy preference for dividend and do not have priority for payment of capital at the time of winding up of company.
- Equity shareholders own the company and bear the ultimate risk associated with the ownership.
- If the company is successful, they enjoy great financial rewards, while if the company fails, the risk falls mainly on them.
Hence, equity shareholders are real owners and controllers of the company.
APPEARS IN
RELATED QUESTIONS
______ participate in the management of their company.
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.
State whether the following statement is true or false.
Equity share capital is known as venture capital.
State whether the following statement is true or false.
Equity shareholders are described as ‘shock absorber’ when company has financial crisis.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Answer in one sentence.
What are Equity Shares?
Answer in one sentence.
What are cumulative preference shares?
Correct the underlined word and rewrite the following sentence.
Equity shares get dividend at fixed rate.
Correct the underlined word and rewrite the following sentence.
Preference shares get dividend at fluctuating rate.
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.
Distinguish between the following.
Equity shares and Preference shares.
State the features of equity shares.
Answer the following question.
What are preference shares? State it’s features
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.
