Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Who are Equity shareholders of the company?

Options:

Potential Investors

Creditors

Owners

All of the above

Correct Answer:

Owners

Explanation:

The correct answer is option 3- Owners.

Equity shareholders are the individuals who contribute towards the capital of the company. They are the owners of the company. They have the right to take part in the meetings of the company. They are entitled to profit or loss arising from the business operations of the company. They get whatever is left after paying all the other stakeholders.