Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:
What is the status of shareholders in a company?
Options:
They are the Agents of the company
They are the owners of the company
They are the members of the company
They are the creditors of the company
Correct Answer:
They are the owners of the company
Explanation:
A shareholder is an owner of a company as determined by the number of shares they own. A stakeholder does not own part of the company but does have some interest in the performance of a company just like the shareholders.