1 View

Question : Case Study: ABC Corporation - Financing Growth Strategies

ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.

Questions : Different Sources of Finance

What is the primary characteristic of equity shares?

Option 1: Fixed dividend payments
  

Option 2: Ownership in the company
 

Option 3: Guaranteed redemption

 

Option 4: No voting rights


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Ownership in the company


Solution : The correct answer is (b) Ownership in the company

Equity shares represent ownership in a company, conferring the shareholder with ownership rights and an ownership stake in the company. Equity shareholders have a claim on the company's assets and earnings and typically have voting rights, allowing them to participate in key decisions and the governance of the company. Unlike debt instruments such as debentures, equity shares do not entail fixed dividend payments or guaranteed redemption. Instead, dividends to equity shareholders are subject to profitability and the decisions of the company's board of directors.

Related Questions

ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
K J Somaiya Institute of Mana...
Apply
Highest CTC: INR 28.25 LPA | Average for Top 100 offers: INR 17.34 LPA | Ranked #63 in India under Management category by NIRF | 148 Recruiters
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
Bharathidasan Institute of Ma...
Apply
#94 in Management Category by NIRF | AACSB Member | AICTE Approved
JIMS- Kalkaji PGDM Admissions...
Apply
60+ Students Placed at Grant Thornton (Batch 2023-25) with a Record-Breaking Salary of INR 11.5 LPA Assured placements. Highest CTC - 35 LPA. Schol...
FORE School of Management PGD...
Apply
AICTE Approved | NBA & SAQS Accredited | Ranked #53 by NIRF 2024 | Highest CTC: 70 LPA | Avg. CTC: 16.01 LPA
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books