Correct Answer: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.

Solution : The correct answer is (b) Both assertion and reason are true, but the reason is not the correct explanation of the assertion.

The assertion is true. Equity shares do provide ownership rights to the shareholders. When an individual purchases equity shares in a company, they become a part owner of that company, with the right to participate in the company's decision-making processes through voting at shareholder meetings and influencing the company's direction and policies.

The reason is not the correct explanation. Equity shareholders are not entitled to receive fixed dividends every year. Unlike preference shareholders who have a fixed dividend rate, equity shareholders' dividends are not fixed and are typically declared by the company's board of directors based on the company's profitability and other financial considerations. The payment of dividends to equity shareholders is at the discretion of the company and is not guaranteed or fixed.