Differences Between Equity Shares and Preference Shares
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Questions and Answers

Who are the primary risk bearers in a company?

  • Equity shareholders (correct)
  • Board of directors
  • Preference shareholders
  • Third-party creditors

Which type of shareholders receive dividends depending on the profits of the company?

  • Creditors
  • Both equity and preference shareholders
  • Equity shareholders (correct)
  • Preference shareholders

In case of winding up, who gets priority for the refund of capital?

  • Board of directors
  • Equity shareholders
  • Preference shareholders (correct)
  • Creditors

When do equity shareholders gain voting rights in a company?

<p>After the settlement of preference shareholders (B)</p> Signup and view all the answers

Which type of shares usually have higher face value?

<p>Preference shares (A)</p> Signup and view all the answers

What determines the dividend payment to preference shareholders?

<p>Market conditions (B)</p> Signup and view all the answers

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