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Sources of Business Finance — Business Studies STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceBusiness StudiesSources of Business Finance1 Mark
MCQ
Tick $(\checkmark)$ the correct answer out of the given alternatives.
Equity shareholders are called:
  • ✓
    Owners of the company.
  • B
    Partners of the company.
  • C
    Executives of the company.
  • D
    Guardian of the company.
✓

Answer

Correct option: A.
Owners of the company.
Explanation:
Equity shareholders do not get a fixed dividend but are paid on the basis of earnings by the company.
They are referred to as ‘residual owners’ since they receive what is left after all other claims on the company’s income and assets have been settled.

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