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प्रश्न
Justify the following statement.
Equity share capital is risk capital.
उत्तर
Justification:
- Equity shareholders own the company and bear ultimate risk associated with the ownership.
- The equity shares do not enjoy preference for dividend. Also, they do not have priority for repayment of capital at the time of winding up of the company.
- Equity shareholders do not carry any fixed commitment of dividend. They are paid dividend at the rate recommended by Board of Directors.
- If there is no profit, no dividend will be payable. Similarly, if there is less profit, lesser dividend will be paid.
- The fortune of equity shareholders is tied up with the ups and downs of the company.
- They are described as ‘shock absorbers’ when company has financial crisis.
Hence, equity share capital is risk capital.
संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ is a smallest unit in the total share capital of the company.
______ shares are issued free of cost to existing equity shareholders.
Select the correct answer from the options given below and rewrite the statement.
The holder of preference share has right to receive ______ rate of divided.
Select the correct answer from the options given below and rewrite the statement.
The accumulated dividend is paid to ______ preference shares.
Select the correct answer from the options given below and rewrite the statement.
The holder of ______ preference shares has the right to convert their shares into equity shares.
Write a word or a term or a phrase which can substitute the following statement.
A document of title of ownership of shares.
Write a word or a term or a phrase which can substitute the following statement.
Name the shareholders who participate in the management.
State whether the following statement is true or false.
Equity share capital is known as venture capital.
Equity shareholders enjoy fixed rate of dividend.
Complete the sentence.
The convertible preference share holders have a right to convert their shares into ______
Complete the sentence.
Bonus shares are issued as gift to ______
Answer in one sentence.
What is a share?
Correct the underlined word and rewrite the following sentence.
Equity shares get dividend at fixed rate.
Justify the following statement.
Different investors have different preferences.
Answer the following question.
What are preference shares? State it’s features
Give one word or phrase for the following sentence:
What is Share?
Explain the following term/concept in detail:
Equity shares
Justify the following statement.
Preference Shareholders get priority in dividends over equity shareholders.
