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Questions and Answers
What is the primary characteristic of equity shares?
What is the primary characteristic of equity shares?
- Special rights in capital repayment
- Ownership of the company (correct)
- Guaranteed annual dividend
- Preferential rights in dividend payments
What type of rights do equity shareholders have in the company?
What type of rights do equity shareholders have in the company?
- No rights in company activities
- Limited control based on shareholding
- Control through voting rights (correct)
- Exclusive rights in capital repayment
How does equity share capital affect creditors?
How does equity share capital affect creditors?
- Increases the confidence of creditors (correct)
- Causes creditors to withdraw loans
- Has no impact on the confidence of creditors
- Decreases the confidence of creditors
During losses, what happens to the dividend for equity shareholders?
During losses, what happens to the dividend for equity shareholders?
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What is the primary function of equity share capital in raising long-term capital for a company?
What is the primary function of equity share capital in raising long-term capital for a company?
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What rights do equity shareholders have in the company's activities?
What rights do equity shareholders have in the company's activities?
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Who are the primary risk bearers in the case of losses for a company?
Who are the primary risk bearers in the case of losses for a company?
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How does equity share capital impact the confidence of creditors?
How does equity share capital impact the confidence of creditors?
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