Download App

Sources of Business Finance — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMSources of Business Finance2 Marks
Question
Why is ordinary equity share called risky share ?
✓

Answer

  • Ordinary equity share is called risky share because whether dividend will be paid on this type or not is not certain.
  • The rate of dividend is not fixed. When the company is dissolved or is in liquidation after paying due to all others if the fund remains then only equity shareholders may get their capital back.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "2 Marks Each" from Sources of Business Finance→Sources of Business Finance — all question types→OCM STD 11 Commerce question papers→Gujarat Board STD 11 Commerce question papers→Gujarat Board question paper generator→

Similar questions

Point out any four social responsibilities of business towards society.
→
State the social responsibility regarding land and forest.
→
State the importance of private enterprises in economy.
→
Why is the idea of ‘Commerce ‘broader than that of ‘ Trade ‘?
→
"The Government of India receives foreign remittances through foreign trade." In this context, which specific areas have been established for trade in India and why?
→
What is wholesale Trade?
→
The objective of business not only to gain profit but to gain pair profit “. – Discuss.
→
Who are appointed by government in the Board of Directors of public sector ?
→
Why India and China are preferred for Business Process Outsourcing $(BPO)$ ?
→
"Business cannot exist without society. Where there is society, there is business." In this context, explain the objectives of business towards different groups in society.
→