CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Factors Affecting Choice of Source of Funds

Why is equity...

Question

Why is equity share capital called risk capital?

Open in App

Solution

The equity share capital is called risk capital because equity shareholders are entitled to get the dividend only after all other classes of shareholders have received their specified returns.

Suggest Corrections

thumbs-up

9

Similar questions

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

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.

Write any three limitations of equity share capital.

Q. Equity share capital carries __________.

Q. The amount of debt, equity share capital, preference share capital are __________ by financial decisions, which is a part of financial management.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

International Financing

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Factors Affecting Choice of Source of Funds

Standard XI Business Studies

Join BYJU'S Learning Program

CrossIcon