MyQuestionIcon

2

You visited us 2 times! Enjoying our articles? Unlock Full Access!

Business Studies

Equity Capital

Equity shareh...

Question

Equity shareholders are the owners of the company. The capital raised by the issue of such shares is known as .

A

owner's funds

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

creditors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

depositors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

equity share

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A owner's funds
Equity shareholders are the owners of the company. The capital raised by the issue of such shares is known as ownership capital or owner's funds.

Suggest Corrections

thumbs-up

0

Similar questions

Q. The capital raised by issue of equity shares is known as ____________.

Q. The money raised by issue of equity shares is called ________ share capital.

Q. Consider the following statements:
(1) Preference shares can be redeemed either out of profit of the company or out of the proceeds of fresh issue.
(2) Preference shares are redeemed after equity shares.
(3) Preference shareholders have preference right as to dividend as well as return of capital.
(4) A company cannot issue preference shares redeemable after 20 years.
The correct statements are ________________.

Q. Assertion :Right shares are given to equity shareholder in proportion to their share capital in the company. Reason: Equity shareholders assume the greatest risk in the company.

Q. X limited issued 10,000 equity shares of Rs.10 each at premium Rs.2 each. The company has incurred issue expenses of Rs.5,000. The equity shareholders expect dividend of

18 %

then cost of capital is ____________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Owners Funds

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Standard XI Business Studies

Join BYJU'S Learning Program

CrossIcon