Question 16 of 20
Q.Equity shareholders are the ________ of a company.
(a) Debtors
(b) Creditors
(c) Employees
(d) Owners
Tamil Nadu DgeTamil Nadu HSC First Year (DGE) Commerce Board 2022MCQ· 1mImportance★★★★★
80% · 16/20 Questions
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Start your 14-day free trial to unlock the full solution →The answer is option (d) Owners; equity shareholders are the true owners (proprietors) of a joint stock company.
Equity shares represent the ownership capital of a company. The people who hold these shares:
- Contribute the permanent risk capital of the company.
- Enjoy voting rights and therefore control the management by electing directors.
- Receive dividend only after creditors, debenture-holders and preference shareholders are paid, and get the residue of assets on winding up. …
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