Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Equity Shareholders are :-

Options:

Creditors

Owners

Customers of the Company

Partners of the Company

Correct Answer:

Owners

Explanation:

The correct answer is option (2) : Owners. 

In the context of business and finance, equity holders are considered owners of a company. This applies primarily to companies that are structured as corporations, where ownership is represented by shares of stock. Equity holders own shares or equity in the company. Each share represents a certain percentage of ownership in the business. The more shares a person or entity holds, the larger their ownership stake.