Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

Equity shareholders are................ of the company:

Options:

Owners

Creditors

Customers

Debtors

Correct Answer:

Owners

Explanation:

The correct answer is Option (1) → Owners

Equity shareholders are the real owners of a company. They contribute capital, bear the ultimate risk, and have residual claim over profits (dividends) as well as assets in case of winding up, after meeting all liabilities.