8 Questions
What is the primary characteristic of equity shares?
Ownership of the company
What type of rights do equity shareholders have in the company?
Control through voting rights
How does equity share capital affect creditors?
Increases the confidence of creditors
During losses, what happens to the dividend for equity shareholders?
It is not paid
What is the primary function of equity share capital in raising long-term capital for a company?
Basis for loans
What rights do equity shareholders have in the company's activities?
Control
Who are the primary risk bearers in the case of losses for a company?
Equity shareholders
How does equity share capital impact the confidence of creditors?
Increases the confidence of the creditors
Test your knowledge about equity shares and capital with this quiz. Learn about the features and importance of equity shares for raising long term capital by a company.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
