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Business Studies

Dividend Decision

Equity share ...

Question

Equity share holders may receive ____ on their investment.

A

interest

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B

dividend

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C

bonus

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D

(B) & (C)

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Solution

The correct option is D (B) & (C)
Equity share holders are the owners of the company, equity shares are also known as owner's share capital or owner's fund. Equity share holders may receive dividend and/or bonus. The profits that the company earns after the repayment of creditors and other liabilities is received by the equity share holders.

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