Question

Equity shareholders are the __________.

• A. Owner of the company
• B. Creditors of the company
• C. Debtor of the company
• D. Management of the company

Answer 1

The correct option is A Owner of the company

Shareholders of a company are the owners of the company owning equity shares issued by the company. The Memorandum and Articles of Association of the company prescribe the rights and obligations of shareholders. Since, equity shareholders accept the business risks in real sense, they are the real owners of the company.

The control of the company is vested in equity shareholders.