Question

Equity shareholder are called

(a) Owners of the company

(b) Partners of the company

(c) Executives of the company

(d) Guardian of the company

Answer 1

The equity shareholders of a company are called its owners. They are also known as residuals claimants, or residual owners, as the dividends which they receive are the part of profits which is left after making or settling all the other claims of the company.

Hence, the correct answer is option (a).