Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

What is the term used for individuals who provide capital to a company?

Options:

Employees

Managers

Customers

Shareholders

Correct Answer:

Shareholders

Explanation:

Shareholders are the individuals or entities that provide capital to a company by purchasing shares. Shares represent ownership in the company and entitle the shareholders to a portion of the company's profits and assets. Shareholders are essentially the owners of the company, and their investments contribute to the company's capital, allowing it to fund its operations, growth, and various activities.